Investors are more likely to sell a stock with a profit and less likely to sell a stock at a loss. Although this may seem counter-intuitive, it is in line with studies of how investors in the stock market make decisions. It seems we are more likely to take a small profit (something concrete) than sell at a loss, which confirms our mistake and closes the door on a possible rebound.
There are good reasons to sell at a profit, but there is seldom a good reason to hold on to a confirmed losing stock. The fear of turning a “paper loss” into a real loss is strong.
When is a good time to sell a winning stock? Some would counsel never to sell winning stocks, while others caution that selling is a deliberate process just like buying.
Say you have a stock that had a good run and now you wonder whether you should take your profits and run or wait for a sign that the stock is about to reverse direction.
There are several warning signs that can tip you off to changes that may mean the price is headed south.
Fundamentals Fail
If the company’s fundamentals (sales, debt, cash flow and so on) begin to show signs of stress, it may mean something has changed that will negatively affect the stock’s price.
Don’t wait for the market to panic over a decline in revenue or another key fundamental, be prepared to unload the stock while you still have a healthy profit.
Target Price
Many investors set a floor on the stock’s price so that if it falls below a certain level, they sell. You can also set an upper limit that triggers your sale.
The rationale here is that you may be afraid that the stock will have a difficult time supporting a market price above a certain level and any hint of bad news will send the price into a nosedive.
Other investors simply say, “I want to make this return, and when I hit that, I’m going to move on to another opportunity.”
Dividend Cut or Eliminated
When companies start cutting or eliminating dividends, it is time to consider dropping it seriously.
Dividend cuts are serious events and signal financial difficulties that investors should pay close attention to.
Strategies for Selling
Other strategies for selling include the thoughtful consideration that events are moving against your stock and you need to act. Here are some ideas:
- Watch out for hype. If a stock you own becomes the focus of media attention and receives a lot of buzz, it may be time to look at taking a profit. These types of stock-feeding frenzies attract inexperienced investors who bid up prices only to have the market collapse when the hype dies. If you’re not careful, you can watch the price fall right past your profit.
- Watch growth. Growth stocks grow. When they stop growing or growing begins to slow, it’s time to move on. The market is not kind to growth stocks that fail to maintain their growth.
- Take part off the table. If you have a good profit in a stock, consider selling part — say 50 percent and taking your profit — while letting the remainder continue to grow. This way you lock in a certain level of profit and, if you follow the other tips here, you can bail on the stock when it starts to fall with some more profit.
- Better deal. Remember, there are other stocks that may provide a better opportunity with less risk. Just because you have a good stock with a nice profit, doesn’t mean you shouldn’t stop looking for a better deal.
Don’t Be too Quick
While you always want to maximize your investment, don’t eat into your profit by running up a big bill at your stockbroker in commissions through excessive trading.
A few smart trades will beat a dozen mediocre ones any day.
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Foreign exchange is a global market that is incredibly liquid with enormous trading volume.
Before jumping in forex trading, there are various unique advantages of forex trading over other financial markets that every trader must know.Top 11 Advantages of Forex TradingHere in this article, we are going to focus on some unique advantages of forex trading.1.High LiquidityThe foreign exchange market is the most liquid market in the whole world.
In the world of finance and high forex, liquidity indicates the easier movement of money in and out with little price difference in buy and sell prices.
But this could turn into a great disadvantage as well because the price movement can happen on any side.
Here are some currency pairs which are more popular than others.Minor Pairs: SGD/JPY, USD/ZAR, and CAD/CHFMajor Currency Pairs: EUR/USD, GBP/USD, and USD/JPYExotic Pairs: TRY/JPY, EUR/CZK, and USD/MXNEmerging Currency Pairs: EUR/RUB, USD/CNH, and AUD/CNHYou can trade in all these currency pairs with a trading account.4.24/5 AvailabilityTrading in the forex market is a continuous process because it is a global market, and if a market closes in one country then somewhere in the world a new market opens in another country.
Spread is the difference between the asking price and bid price.For example, in a forex trade selling price is 1.3428 and buying price is 1.3427, then the spread for this transaction is one pip.Some brokers also charge a commission on the transaction.
The Ichimoku tool is mainly used in the futures and commodities markets.
The system also consists of the remarkable quality of enhancing as per the future.
But the Cloud consists of different features and three other line indicators that help signal effective trading setup and patterns.
Traders can eliminate market noise through longer timeframes and raise the results of the Ichimoku Indicators technical support tool.Traders will get Ichimoku indicators in MetaTrader 4 trading software.
Kumo Cloud (the gridded area): These sectors represent resistance and support, distracted from preceding costs data.
Multiple lines come in or pass via the particular regions; during the Cloud changes colour.Chinkou-span (wrinkled green signal): This line determines market attitude based on current closing prices but flows backwards mainly 26-time intervals.
Setting up a new record, GST collections have registered a new high and inflated to Rs 1.06 Lac Cr from Rs 97,247 Cr during March 2019.“Total gross GST revenue collected in March 2019 is Rs 1,06,577 Cr of which Central GST is Rs 20,353 Cr, State GST is Rs 27,520 Cr, Integrated GST is Rs 50,418 Cr and Cess is Rs 8,286 Cr,” said the official statement communiqué.As per the official figures, the total number of summary sales return GSTR-3B filed for February and up to March 31, recorded at 75.95 lakhGross GST revenue collected in the month of March, 2019 is Rs.
20,353 Cr, SGST is Rs.27,520 Cr, IGST is Rs.50,418 Cr (including Rs.
23,521Cr collected on imports) and Cess is Rs.
The total number of GSTR 3B Returns filed for the month of February up to 31st March, 2019 is 75.95lakh.The Government has settled Rs.17, 261Cr to CGST and Rs.
13,689Cr to SGST from IGST as regular settlement.
20,000Cr has been settled from the balance IGST available with the Centre on provisional basis in the ratio of 50:50 between Centre and States.
Today, millions of traders trade every day in the forex market.
Yes, it is indeed a huge ratio.
Therefore, one needs to step with utter cautiousness in the forex market.2.One can derive profit from the underlying profit in forex trading.
Yes, of course, it takes a lot of practice.
The forex market never sleeps.
The market is open twenty-four hours a day for five days a week.
William J.O'Neil, an American technician in one of his books, named "How to Make Money in Stocks," defined Cups and Handle.
A cup with a handle shaped chart indicating the flow of trend is termed as Cups and Handle technical chart pattern.
But, still, some of the traders adhere to O'Neil's rules.
A stock forming pattern indicates a trend, and with a Cup and Handle, the uptrend could be known.
Things to keep in mind when observing Cup and Handle pattern:Cups with long ‘u’ indicate a strong signal to invest.
Volume should decrease with price and increase when the price goes higher.
