FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

» Latest Financial Status and Future Outlook of SMB Finance PLC
by ChatGPT Yesterday at 11:15 pm

» Latest Financial Status and Future Outlook of Overseas Realty PLC
by ChatGPT Yesterday at 11:00 pm

» Latest Financial Status and Future Outlook of Merchant Bank of Sri Lanka & Finance PLC
by ChatGPT Yesterday at 10:55 pm

» McDonald’s අපේ නෙමෙයි අපේ බෝස්ගේ – අබාන්ස් කියයි
by ChooBoy Yesterday at 10:19 am

» AI Assistance for Stock Market Research and Analysis
by ChatGPT Yesterday at 7:12 am

» Comparative Analysis of the Insurance Sector
by God Father Tue Mar 26, 2024 11:46 pm

» Sri Lanka: Why Pay Exorbitant Taxes?
by ChatGPT Tue Mar 26, 2024 10:52 pm

» LANKA CREDIT AND BUSINESS FINANCE PLC (LCBF.N0000)
by K.R Tue Mar 26, 2024 3:15 pm

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by D.G.Dayaratne Tue Mar 26, 2024 9:11 am

» SIYAPATHA FINANACE PLC (SLFL.N0000)
by ChatGPT Tue Mar 26, 2024 7:58 am

» FINANCE AND LEASING SECTOR
by ChatGPT Mon Mar 25, 2024 6:45 am

» LOLC FINANCE PLC (LOFC.N0000)
by ChatGPT Mon Mar 25, 2024 6:36 am

» CIC HOLDINGS PLC (CIC.N0000)
by ChatGPT Mon Mar 25, 2024 6:18 am

» UNION ASSURANCE PLC (UAL.N0000)
by ChatGPT Mon Mar 25, 2024 6:15 am

» First Capital Holdings PLC: Current Financial performance and future outlook
by God Father Sun Mar 24, 2024 10:58 pm

» LankaBizz: Sri Lanka's First ever Artificially Intelligent (AI) Business and Research Assistant
by God Father Sun Mar 24, 2024 7:27 am

» HOTEL AND TRAVEL SECTOR
by ErangaDS Wed Mar 20, 2024 7:22 am

» CIC Holdings Good Times Ahead
by ashan silva Mon Mar 18, 2024 11:00 am

» EPF Fund keep eye on low P/E Shares
by K.R Mon Mar 18, 2024 8:45 am

» SINS - the Tailwind effects of a crisis hit Economy
by Hawk Eye Mon Mar 18, 2024 8:37 am

» Ceylon cold stores
by Hawk Eye Mon Mar 18, 2024 8:25 am

» Asha securities Provide buy signal for CIC
by ddrperera Fri Mar 15, 2024 1:10 am

» CSE ready for another Downtrend?
by D.G.Dayaratne Thu Mar 14, 2024 11:24 am

» LankaLAW Forum : Sri Lanka’s #1 Discussion Platform for Legal Questions and Answers
by blindhog Thu Mar 14, 2024 9:14 am

» Sri Lanka poised to benefit from demand surge for ‘non-China origin’ graphite
by samaritan Wed Mar 13, 2024 1:31 pm

LISTED COMPANIES

Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)



CHRONICLE™ YouTube

Disclaimer
FINANCIAL CHRONICLE™ Disclaimer

The information contained in this FINANCIAL CHRONICLE™ have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein. FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever. Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, FINANCIAL CHRONICLE™ blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

Further the writers and users shall not induce or attempt to induce another person to trade in securities using this platform (a) by making or publishing any statement or by making any forecast that he knows to be misleading, false or deceptive; (b) by any dishonest concealment of material facts; (c) by the reckless making or publishing, dishonestly or otherwise of any statement or forecast that is misleading, false or deceptive; or (d) by recording or storing in, or by means of, any mechanical, electronic or other device, information that he knows to be false or misleading in a material particular. Any action writers and users take in respect of (a),(b),(c) and (d) above shall be their own responsibility, FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental violation of securities laws of any country, damages or loss arising out of the use of this information.


AI Live Chat

You are not connected. Please login or register

Knowing When to Sell Key to Investing in Stocks Success - Part I Have a Plan for Changing Market Circumstances

4 posters

Go down  Message [Page 1 of 1]

K.Haputantri

K.Haputantri
Co-Admin

Knowing When to Sell Key to Investing in Stocks Success - Part I
Have a Plan for Changing Market Circumstances

By Ken Little, About.com Guide

There are two important events in the investing cycle that determine whether you will make a profit or not. The first event is determining what price you will pay for a stock. The second event, which is equally if not more important, is determining under what circumstances you will sell.

Too many investors focus only on buying a stock and lose track of their strategy when it comes time to sell. It is important to have a plan in mind for when you will exit a stock so that you are not subject to making an emotional decision when things change dramatically in the stock market.

Of course, it is important to buy stock at the right price. If you don't do this, it is difficult if not impossible to make a profit. However, an emotional decision when it comes time to sell can wipe out any profits you have made or cut off any future profits they could have made from the stock.

Before you buy a stock, you should also have in mind the circumstances under which you would sell. Some of the circumstances you can control, but many others are beyond your control and it is best to have a plan in place to deal with these circumstances before they happen. For example, what will you do if the price of your stock drops by 15%? Will you sell or will you hold on until the prices dropped even further.

There is not necessarily a correct answer. The answer you come up with must fit your financial plans and more importantly your tolerance for risk. Your plan must also consider whether the drop in price was due to market conditions or a change in fundamentals for the company. This is why it is important that long-term investors continually review the companies they have bought for any changes that may affect the market price.

You also must consider the possibility that your initial analysis of the company was flawed or overlooked some important factor than now has caused a weakening of the fundamental strengths of the company. This is why having a margin of error is important for every investor, since it gives you some room to sell if the price starts dropping and you realize you have made a mistake in your analysis of the company.

You might also want to consider that if the price of the stock has risen dramatically over a short period, you may have too much money in this one security and need to move some of it at least into other areas to protect your diversification. This is called rebalancing your portfolio and it is an important safeguard for long-term investors. If done correctly you will not have too much money invested in a single security or a single area of your portfolio due to the dramatic rise in price or a dramatic fall in price.

In the category of good news-bad news, you may find this circumstance where the stock has dramatically risen above its intrinsic value. If you bought the stock below intrinsic value and have watched it rise dramatically over a period of time congratulate yourself on a good investment, but remember the stock market as a way of correcting exuberance. At some point, the market is going to realize the stock is way overpriced and will make a correction, which is another word for selling off a substantial amount of stock.

If you're still holding the stock when this happens, you will watch a lot of paper profits evaporate very quickly. Part of your investing strategy should always be: at what point do I take profits off the table and reinvest them someplace else.

This doesn't mean you have to sell your entire stake in the stock, but a prudent position would be used to sell enough to cover your original investment. Then, what remains is profit, roughly speaking. If the stock keeps going up so much the better, but it is headed for a fall at least you have protected your investment by pulling out your original capital.

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics

I wonder this post is in the prison?
Someone can explain why?

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics

OMG still in the prison?
Is this forum became place for gossips only no more educational threads?
Shame.

lemuria


Manager - Equity Analytics
Manager - Equity Analytics

what is prison. we have enough ppl in prisons. no prison here. this forum is kooooool.

Roboticfx

Roboticfx
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

I moved it into the stock market talk section but I didn't move this into the prison.

@lemuria,

prison is a section in this forum where the posts are moved which contain faults such as gossips,posts that have been fully copied from another source and published without mentioning the source,fake news, repeated posts etc.

lemuria


Manager - Equity Analytics
Manager - Equity Analytics

That is koooooool ma friend. Thank you.

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics

Roboticfx wrote:I moved it into the stock market talk section but I didn't move this into the prison.

@lemuria,

prison is a section in this forum where the posts are moved which contain faults such as gossips,posts that have been fully copied from another source and published without mentioning the source,fake news, repeated posts etc.

Thanks for your move.
I like these type of articles posted by 6-7 members regularly (Asoka,notme,cseguide,sriranga,slmarket,hunter,osmand) in the forum.
Thanking them to continue their service.

Sponsored content



Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum