To sell the stock five rules Money Tips

Category: Money Tips Date: 2006-09-03

Buy the stock only completed half or less the investment process, the next is to track individual stocks and sell the stock after the stock soared, so how to sell the stock equally crucial.

Buying stocks in order to make money, but also give investors a loss. In order to avoid a major loss of funds, individual investors need to learn how to sell the stock. Here, we introduce a simple and practical method of selling shares. Study and use of this approach include three steps: first, learn some useful selling rules; second, in all your marketing activities to follow these rules; third, never violated these rules.

As the saying goes: Will buy is silver, will be sold is golden. If you buy a good stock, unable to choose a good time to sell, it will bring a lot of regrets to the equity investment. Through the study of the stock market are summarized the following five rules to sell the stock, hoping to give you some help.

Ask Law 1: 7-8% lower than the purchase price determined stop-loss

The first and most important one for many investors to sell in terms of the rules is very difficult. After all, for many people to recognize our own mistakes is more difficult. Investments of the most important is that when you make mistakes when the error and will be quickly recognized that the loss to a minimum, which is 7% stop-loss rules of the causes.

Through the study found that 40% of the large Niugu often end up in the back after the outbreak of the initial flashpoint. The same study also found that the critical point and fell 7-8% of the stock future, a better opportunity to show less. Investors should be careful not to only see a small number of stocks rose after the crash example. In the long term, sustained losses to a minimum within the investment would be to obtain better returns.

Therefore, the bottom line is to the purchase price fell below 7-8%, to sell the stock! Do not worry about making mistakes when you take a small loss, when you do not make mistakes, you will get more compensation. Of course, the use of stop-loss rules It should be noted: buy point should be a crucial point and the investors buying the stock when you buy point to determine flash point, although the benefit of hindsight is not necessarily buying point flashpoint.

Ask Rule 2: sell the stock after the climax

There are many ways to judge a Niugu will have peaked and dropped to a reasonable price, one of the most common method is to determine when the market investors are trying to kill all the time ownership of the shares. A stock gradually rose 100% or even more later, suddenly accelerated rise, stock prices rose 25-50% within 1-2 weeks, from the graphical point of view is almost vertical rise. This situation is not very exciting? However, shareholders should be aware of rejoicing, I: The throws stocks. The stock has entered the so-called high tide zone. Shares continued to rise in general is difficult, because no one wants to buy the more expensive. Suddenly, the huge demand for the Unit became a huge sell-off. Based on the past 10 years Niugu study, the stock fell after the climax, it is difficult at the back to the original cake, if they can come back also requires 3-5 years. Ask Rule 3: Continuous Su Liang hit a high point of time to sell

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The stock price is determined by supply and demand. When a stock when the stock began to rise significantly, its volume is often a lot higher. The reason is that institutional investors scramble to buy stock ahead of ahead of its competitors. Over a longer period of rise, the shares rose power failure. Shares will continue to hit new highs, but the volume begin to decline. Have to be careful this time, and this time, few institutional investors are willing to re-buy the stock, the supply began to exceed demand, the final sell-off is growing. Increase often precedes a series of Su Liang reversal.

Ask Law 4: 20% of profits after the end

Not all stocks will continue to rise, and many growth investors tend to sell shares after the stock rose 20 percent. If you can throw 20% of the shares at a profit in the 7% stop loss, then you invest four times to one time would not suffer a loss. For this rule O'Neill gives an exception, he noted that if the stock price after the outbreak of points, within 1-3 weeks up 20%, do not sell, hold at least 8 weeks. In his view, such a rapid rise in share price the stock has increased by 100-200% of the kinetic energy, it needs to hold a longer time to share more revenue.

Ask Rule 5: When a stock break through the latest platform, failed to sell stock

We all know that spring, summer autumn and winter seasons, large Niugu trend is also similar cycle. These stocks experiencing a rapid rise and build a platform alternating. In general, the longer the time to build a platform, then the greater the increase in stock prices. But it also exists the possibility of stock prices peaked, the share price may fall sharply. Typically, when the stock reached its peak earnings and sales growth is very good, because stock prices reflect the future. Undoubtedly, the stock will slow down the rapid growth in the company before the peak. When there is a large negative news, if the message is expected to result in failure of the latest platform to build, investors should sell the stock quickly.

Stock and the stock market were to follow certain rules, and the key to success lies in selling the stock, without exception, for more than a simple summary of the implementation of our laws. Should always be vigilant after buying the stock, subject to the rule occurs when the selling firm to sell the stock. Strictly enforce the rules will not only help you to sell to avoid big losses, but also will help increase your wealth.

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