Selling at a loss.. Yes? No? Maybe? I see it
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Posted On: 01/09/2017 12:30:08 PM
Selling at a loss.. Yes? No? Maybe?
I see it all the time. Investors say things such as, 'Im never selling', 'Buy on the dips!', "BELIEVE!", "Never give up!" "This is a gem!", "Next week is the week!", and "I lost so much its not worth selling at this point." The list goes on and on.
Selling at a loss is a personal decision. I could care less whether or not you sell at a loss or hold for all eternity. My point is, is it better to sell at a loss, do extensive DD in another stock, and then reinvest your remaining balance in that stock? Or is it better to watch the price plummet for years, hoping it goes back up?
Best quote:
Best article out there about selling at a loss:
http://www.investopedia.com/articles/02/02200...-no-widget
I believe the #1 reason investors refuse to sell at a loss is the literal 'fear' that if they sell, there is the slightest possibility the stock may skyrocket in price; therefor they missed out on their big payday. Thus, in their minds, it is better to never sell, and cling to a hope that someday the price climbs.
Its possible that thinking like this may be an indicator that the investor is not prepared to invest and should speak with an investment professional before continuing.
Of course, we have to watch out for investors like this because it is very common for them to blame other people for their losses. As an investor, we need to be willing to take responsibility for our actions, profits, and losses.
Not investment advice
I see it all the time. Investors say things such as, 'Im never selling', 'Buy on the dips!', "BELIEVE!", "Never give up!" "This is a gem!", "Next week is the week!", and "I lost so much its not worth selling at this point." The list goes on and on.
Selling at a loss is a personal decision. I could care less whether or not you sell at a loss or hold for all eternity. My point is, is it better to sell at a loss, do extensive DD in another stock, and then reinvest your remaining balance in that stock? Or is it better to watch the price plummet for years, hoping it goes back up?
Best quote:
Quote:
A stock that declines 50% must increase 100% to break even! Think about it in dollar terms: a stock that drops 50% from $10 to $5 ($5/$10 = 50%) must rise by $5, or 100% ($5/$5 = 100%), just to return to the original $10 purchase price. Many investors forget about simple mathematics and take in losses that are greater than they realize. They falsely believe that if a stock drops 20%, it will simply have to rise by that same percentage to break even.
Best article out there about selling at a loss:
http://www.investopedia.com/articles/02/02200...-no-widget
I believe the #1 reason investors refuse to sell at a loss is the literal 'fear' that if they sell, there is the slightest possibility the stock may skyrocket in price; therefor they missed out on their big payday. Thus, in their minds, it is better to never sell, and cling to a hope that someday the price climbs.
Its possible that thinking like this may be an indicator that the investor is not prepared to invest and should speak with an investment professional before continuing.
Of course, we have to watch out for investors like this because it is very common for them to blame other people for their losses. As an investor, we need to be willing to take responsibility for our actions, profits, and losses.
Not investment advice
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There is a VERY HIGH degree of RISK involved in trading and investing. Only invest what you can afford to lose.
http://investorshangout.com/Joeys-Investment-Board-91611/
Invite Only
There is a VERY HIGH degree of RISK involved in trading and investing. Only invest what you can afford to lose.
Disclaimer:
As used herein, the terms "You" and "Your" shall mean you, individually, the reader, and each other party on whose behalf you may use the contained information at any time.
All references to "My", "I", and “The writer of the above post” shall refer to the creator of the username Joey68.
Do NOT invest unless you are prepared to sustain a total loss of the money you have invested plus any commission or other transaction charges.
There is a very high degree of risk involved in trading and investing. Past results are not indicative of future returns. I assume no responsibility for your trading and investment results. You should NOT rely on the information in the above post to make any decision or take any action.
ALL OF MY STATEMENTS, including but not limited to, POSTS, MESSAGES, PRIVATE MESSAGES, and RESPONSES are OPINION and NOT fact and are for entertainment purposes only. Do your own research and make your own decisions based on your own conclusions.
ALL OF MY STATEMENTS, including but not limited to, POSTS, MESSAGES, PRIVATE MESSAGES, and RESPONSES are NOT advice, and are NOT designed to substitute the expertise and judgment of a professional. It is your responsibility to seek investment advice during all stages of your investments. It is your responsibility to evaluate the accuracy, completeness and usefulness of the information in the above post.
I am NOT a professional.
I do NOT work for you.
My posts are NOT investment advice. I am not paid to post.
There is no correlation between the number of posts I write per day and your assumed success of a company.
It is NOT my responsibility to inform you of my own personal investment decisions.
It is NOT my responsibility to inform you when it is time for you to buy, hold, and/or sell a position.
I have no control over, and am not responsible for the actions of others who copy, store, edit, change, prepare any derivative work of or alter in any way any of the content provided in my posts.
Errors and Omissions expected. The writer of the above post accepts no liability or responsibility for any errors or omissions contained in the above post or contained within this Disclaimer.
The writer of the above post shall NOT accept any liability for the accuracy or completeness of the information contained in the above post, for any reliance placed by any person on the information contained in the above post, or for any damage or loss, however caused, in connection with the use or reliance on any information contained in the above post.
The above post may contain links to websites owned and operated by third parties. These links are provided for informational purposes only and are NOT endorsed by the writer of the above post. The writer of the above post has no control over the contents of any linked website and bears no responsibility for the accuracy, legality, or content of the external site or for that of subsequent links.
YOU ACCESS ALL LINKS ENTIRELY AT YOUR OWN RISK.
The writer of the above post makes no warranties or representations, express or implied about such linked websites, the third parties they are owned and operated by, or the information contained on these websites.
The writer of the above post accepts no liability for any damage or loss, however caused, in connection with the use of or reliance on any information, material, products, or services contained on or accessed through any such linked websites.
There is a VERY HIGH degree of RISK involved in trading and investing. Only invest what you can afford to lose.
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