Three of the Top Reasons to Consider Selling a Stock

1. Three of the Top Reasons to Consider Selling a Stock

2. The toughest part of trading is known as a sell. That’s why it always pays to establish guidelines for what would force you to consider selling. After all, further planning can – and will remove the stress and the potential for error. https://stockwirenews.com/three-of-the-top-reasons-to-consider-selling-a-stock/

3. No. 1 – The Stock Hits your Stop Loss • When you buy a stock, the best thing to do is set a stop loss. • Some folks use anywhere from 5% to as much as 25%. When it’s hit, you’re automatically out of the position. • When and if the trailing stop is hit, you’re automatically kicked out of the position.

4. No. 2 – The Stock has Hit an Unsustainable Level • A good rule of thumb is to consider exiting a stock when the company’s valuation becomes significantly higher than its peers. • For example: It’s P/E begins to exceed its average P/E over the last five to 10 years. Or, let’s say the company’s revenues are beginning to decline. • If you have a great profit, consider selling half of it, and allowing the second half of the trade to hopefully run a bit higher. https://stockwirenews.com/three-of-the-top-reasons-to-consider-selling-a-stock/

5. No. 3 – The Company Cuts its Dividends • When a company starts to cut its dividends, it’s time to seriously consider selling the stock. • A company dividend cut is a serious issue, and it can signal financial issues you should watch for.

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