When to sell
In the past I have been notorious for holding stocks for too long. What makes you sell a stock, or at what point do you take gains?🤔
I like finding cheaper stocks, so I tend to think it's not much money, while it actually is a considerable gain percentage wise.
What if it goes up more?🤔 It's an odd problem to have i think, most say they are waiting for a dip, feel like I wait too long and miss out on opportunities to cash out and buy something else. 😅
I sell a stock when my thesis changes which hasn’t happened yet lol. I could say when I find something better but as you know I like to keep my portfolio small so I try not to be in a lot of stocks
Tell me about it. When I first started investing in the mid-1990s, I used to sell and then buy a higher quantity of shares in a lower priced stock and then repeat. In the 2000s, I got lazy and basically take $AAPL for example among other things in my portfolio which I bought at $0.28 in today's prices. It goes to $3.20 which a majority of people would have sold if they have not already sold at any lower price before since that's already a 900% gain. It hits $10.00, one would be crazy not to sell it and then it goes to lifetime highs and has fallen and yet I am still holding it. I mean there is no scenario where I can even do Dollar Cost Averaging as the entire reason for the $0.32 per share and not $0.28 like I originally bought it was the first time they paid dividends, I reinvested the dividends and all that did to the cost average was raised it. So I guess it really depends.
For me it's either a thesis changes or I found something much better.
We had a good conversation on this topic a few weeks ago. Feel free to check it out!
After 2020-2021 craze I can say that if I’m up on a stock 50-200% in a day I’m selling … otherwise it depends … thesis change is a big one but also need to not be lazy and do more research whenever something changes
@seasnar, what have you determined to be "too long" when it comes to holding? Can you point to any examples when your holding on has worked in your favor?
@tomato "too long" would be my $TOST holdings in my other portfolio, I could have sold my holdings and made $40 but waited and it tanked, now down $40~lol not too bad but missed out. Back in the beginning of 2020 I purchased some dogecoin as my first investment, that was before people were going crazy about it so it was at about .002 and over time I kept buying some every once in a while just as a joke, I was able to sell last year for a good amount and actually helped a lot with some bills. AMC I think was another good moment for me, but I could have made more if I didn't wait as long. Need to discipline my selling better for sure.
I will sell a stock when the thesis breaks or when I find that my risk exposure needs to be mitigated. I try to adopt the coffee can approach so constantly selling is something I tend not to do often.