How to know when it’s time to sell a stock from your investment portfolio

Julie Brownlee, Fsp Invest, 22 Oct. 2015

Tags: stock, selling stock, when to sell a stock, investment portfolio, long-term investing,



By looking at the performance of the stock market over the decades, the best shot you have of making money is to keep your shares for the long-term.

But along the way, you’ll no doubt invest in some stocks that don’t perform as well as you want them to.

So how do you know when it’s time to cut these stocks from your portfolio?

Let’s take a closer look…



You need to give your investment portfolio a spring clean


Investing for the long-term definitely has its merits, but it’s impossible to always be right about your investments. Every now and then you need to remove the laggards.

This can be difficult. No one likes to admit they’ve made the wrong decision by investing in a stock, but by putting off selling a dud, you’re reducing the chance of your money working harder elsewhere.

It’s important to set realistic goals for the growth of your portfolio. Set a time, perhaps annually, to give your portfolio the once over and check that it’s on track.

For the stocks that are doing well, that’s great. You can leave them ticking along in your portfolio, but for the underperformers, it’s time to take a closer look.


How to decide when to sell a stock


If you’ve had a stock in your portfolio for a year and it hasn’t performed, look to why this is the case. Or if a stock that was a previously good performer has started to drift, try to find out a reason for this.

If you find that the future doesn’t look promising for these stocks, it may be time to sell them. This gives you the chance to free up some of your capital and invest it in other opportunities.

So there you have it. How to know when it’s time to sell a stock from your investment portfolio.

*********** Advertisement ************

Investing 1, 2, 3 – Become an expert in mastering the basics and beyond

Have you been sitting on the sidelines while your friends and family make thousands of rand by investing in the stock market?

Perhaps you feel you don’t know enough to make money by buying and selling shares. Fleet Street Publications has exactly what you need to get started in the exciting game of buying and selling for profit. In this book you will learn all the secrets you need to get started with your own millionaire portfolio.

Go here to discover the ‘must-know’ secrets of successful stock market investing and make 2015 your best year on the markets ever! You’ll be glad you did.

***********************************


Related QA

Pic
willz asked:
Good day I see the share price of Hulamin has dropped continuously since November 2017. Apparently it is a very good buy. Why does the price keep on [read more]
Published at 10 Feb. 2018 in: Shares & Stock Ideas Share price 1 Answer
Pic
BrianD asked:
Can you please advise me what is all required to get set-up for CFD trading? – as per the adverts from Timon? I note the quarterly fee, but what [read more]
Published at 13 Dec. 2017 in: Shares & Stock Ideas Cfd 1 Answer
Pic
DRTANYA asked:
I received shares form NETCARE in 2006 and forgot about it and now I am not sure if it is still available or valid anymore - who can I mail or [read more]
Published at 04 Dec. 2017 in: Shares & Stock Ideas 1 Answer
Pic
asked:
While I have been following Francois suggestions on the Red ?Hot Penny Shares since February this year, I am still not certain how long I am meant to [read more]
Published at 29 Aug. 2017 in: Shares & Stock Ideas Buy Sell Hold 2 answers
Pic
nmaranele asked:
Good day, What would be the right amount to invest as a minimum for equities to see tangible results? [read more]
Published at 18 Aug. 2017 in: Shares & Stock Ideas Minimum invetsment 1 Answer

Related articles:


Latest:

Comments
0 comments