Great question.
A few points
- the market is right more than its wrong, so listen to it.
- to some degree take technical analysis, at a very basic level, into account
- getswift retraces heavily when the market doesn’t, thats an indication to think about selling
- when the whole market corrects, and all stocks with it, nothing has fundamentally changed in the stocks, so don’t sell, top up.
So in Getswifts case it was a fundamental concern of that stock. So that’s an indication that something may have fundamentally changed in that individual stock to make you look very closely.
Also: recognise your gamble stocks from your investment stocks, and act accordingly
Ive mentioned to you some if my investment grade stocks I’ll be very cautious to sell.
However I also hold NET, DUB. RTF which are gamble stocks I’ll quickly sell if they retrace too much.
A horrible analogy, but I often say investing is a little like poker. The best money you sometimes make is the money you “save” buy folding. Kniw when to fold em.
I had Getswift ( twice! $1-$2 then sold. Then back in at $4 and sold at $2.50. )
However I recognised this was a gamble stock so on first bad news from $4 to $2.50 when re instated i was out, take yr loss. Its now what? Not much?
Im far more likely to sell an individual stock dropping than take profit on a stock rising.
I would recommend you have good support, investor club friends, subscription to intelligent investor, Lincoln etc.
If you want to send me an email I can send you a detailed “stock picking” guide my investment group came up with.
we use it as a general guide, and will like modify it along the journey as we continue to learn!
Anyhow each to his own on how you invest, but you originally asked an excellent question on how to stop selling your next A2m fir $2 only to see it ho to$16.
Above is a little of the guidelines I use, hope it helps!
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