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When to sell a Stock |
Mark Meyerowitz,Owner,
Meyerowitz Investment Management
Mr. Meyerowitz has been investing since high
school, in the 1970s.
After graduating from Brandeis University in 1977; Mark built up his small family business into a large local retailing company.
From the mid 1990s to early 2003, Mark was a broker with Smith Barney and with Edward Jones; two of the largest invest firms in the nation.
Mark and his family have lived in West Orange, NJ since 1987.
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 Anyone
who has tried to manage an investment portfolio knows that
the most difficult decision of all to make is the decision
to sell a stock. Here are a few selling observations that
could help.
- Selling could be a highly emotional act. If you sell
and the stock moves up, you feel stupid. If you sell and
the stock drops, you are a genius. The first big problem
with selling is that it is emotionally charged. Instead,
selling should be mechanical. If your selling criteria are
met, don't think, act.
- Always have a "buy" list of stocks that you really want
to own. When one of them moves into a proper buying setup,
it is an easy decision to sell a lagging stock, "liberate"
the money, and move into the promising stock.
- Use price charts. Price history on a chart paints a picture
of the stocks history. If you are a good chartist, you can
make a fairly accurate prediction of the future direction
of the stock.
- If a stock moves down in price, and can't rally back to
its o ld price, you may want out. If the stock builds bases
that are lower and lower in price, say goodbye. Happy investing!
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