BASICS (7): WHEN TO BUY AND SELL STOCKS AND SHARES
The issue of when to buy and sell stocks and shares is rather a personal one and depends largely on personal reasons for getting involved in the first place
For those who gain control of any particular company when to buy or sell is a simple matter: Issue standing orders backed with cash deposits with stockbrokers to buy or even shop for the particular stocks and shares in question.
This could be accompanied with orders to sell other holdings to raise cash whenever needed to buy the shares whenever available.
For those desirous of building a nest for the future, the basic consideration should be how to buy the right stocks and shares to meet your expectations. This may demand you consult your stockbroker more often or even retain a financial adviser or subscribe to a group portfolio.
As for speculators, when to buy or sell is not that simple. It defends on the individual instinct for profit taking. What speculators know is that gains could come from dividend declared; price movements and changes in macro economic developments if well anticipated.
So many develop instinct for buying low and selling high; cutting losses and for maximisation of profit through focussed study of corporate fortunes and macro economic developments.
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