When do you sell your stocks?

Goodday everyone,

Just a simple question, when do you sell your stocks? And what strategy do you follow with this?

See a lot of different opinios on the internet so im curios how do you think about it.

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Hi!

Welcome to bux!

The question you ask, is interesting. You sell your shares when you think that your price goal is reached. For example if you buy apple for $147 and you think apple will reach $200 or more, you would never sell apple below the $200, right?

You would only sell apple if there is something gonna change (in a bad way of the company). Or you think they will never reach the target you hope you would get.

Other people are here (like me) for long-term investments, so if the shares I own go down, I will buy more of them, cause time in the market beats timing in the market.

There are also people who buy only shares before the ex dividend date is reached and they will sell the shares they own the day after the ex dividend date is reached.

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I do have for all my shares fair values. If they reach it. I will sell them. Unless their are fundamental changes. Ofcourse fair values chances over time

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I don’t own stocks, but I guess the reasoning is the same for crypto: whenever I buy assets, I plan to hold forever. Ideally they will provide some kind of passive income (hint to BUX: please allow me to earn yield on my crypto assets :grin:). If that is not the case, I’ll probably sell whenever I need the money once I’m retired.

Like @DaveyV19 said though: one exception is when the fundamentals change: I will sell when that happens.

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Exactly :100:

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Hi @Dennis1 welcome to the BUX Community Forum! :smiley:

Most of the time I’m looking into opportunities of buying assets for the long term, especially now when a lot of shares of interesting companies are trading down. So I’m buying in atm as @Cornel said.

I will start selling some shares when I think they are above their fair values to take some gains.

And like @dogafincan and @DaveyV19 said, I will sell when the fundamentals change.

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Thanks for the welcome and responses guys :slight_smile:.

I still doubt when to sell. I am here for the long term like 25 years at least. So buy and hold forever was my first idea too.

But i see that some stocks that i have reach a specific point that i think they wont go any higher (i am not that good in how to calculate or find a fair value of a stock).

For example Pfizer was $60 and on a (for me) highest point with selling the covid vaccins. The results they had wont go any higher. The stock dropped in a couple of weeks to $45 and are now like around the $50.

So i am searching for what is good to do in the future. Now i have the same thing / idea with Shell.

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You can do a couple things for calculating a fair value… look at the historical p/e or read much about the company state the CAGR and put it on FPE …. Just looking at candle charts won’t help… if you can’t calculate a fair value…. How you know how much a company is worth… that’s the wrong order… btw. I can help you with Shell…… I am holding it with a GAK of 15 euro but It isn’t near my fair value…… so I should say shell is at least a hold but imo still a strong buy and overweight

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Ah thank you!

I still need to learn a lot. At the moment i look at the P/E ratio on for example yahoo finance. And other numbers the company publish. Like is there revenue or debt increasing?

Beside that I read a lot and look on different websites like Macroaxis and SeekingAlpha for information. But still learning and discovering. Dindt CAGR was ;).

Thanks for your opinion about Shell, I dindt sell it so thats good haha. Nice GAK, wish i have bought more (GAK of 16,4 here). But I just started with investing so as I said, I still have to learn a lot :slight_smile:.

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Indeed, I would recommend making your own Excel sheet with your own formulas. Investing is all about opinions and predictions…. I am always laughing about price targets on tesla… 4000 dollar… idk how they calculate that but what I do know is that i disagree with them that’s why I don’t use analist price targets in my sheet… and maybe you see something what other investors don’t see… well when I started I also didn’t know what cagr was…. You will learn much more on this journey…. I also do👌

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I sell stocks in two instances:

  • When the investment thesis on which I bought the stock changes to the negative. Say I bought a company because they are having a growing income stream selling product/service X. When they suddenly decide they don’t want to sell product/service X anymore but want to sell unproven product/service Y.
    Or when that company has paid a steady and rising dividend for years and they decide to cut that dividend.

In short, when the company stops doing the thing I bought it for, I sell it in most cases.

  • The second reason I might sell a company is when it’s blatantly overvalued, better lock in the gains, wait for it to drop again and buy back a new position at a lower price.

Frequently buying and selling stocks is trading, not investing. Trading carries more risk, which is also why most investors lose money doing (day) trading.

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