Selling - Is there a right time to sell?

[CityFarmer]

It might exist (right time to sell) but I personally have not learnt how to do it after investing in penny stocks for more a decade...

Just my opinion, that maybe it's more important to know when NOT to sell, assuming much effort was put into selecting the company for investment in the first place.

It is irrational to assume the effort you put into the selection, will make the stock more valuable i.e. NOT to sell

The decision to sell, or NOT to sell, should depend on fundamental, rather than depend on buying price, effort and emotional factor of the stock

Of course, to understand that is easy, to execute is difficult.

[smallcaps]

Here's a recent example regarding Valuetronics:

1) Directors sold off 26 mil shares in March at 24 cents.

2) Q1 results ended 30 Jun reveals termination of licensing business due to losses.

3) Target price gets downgraded by KH from 31 cents to 16 cents.

Sorry, think may have caused some confusion. Just to clarify that I meant that a good time to sell it is when the directors sold their shares.

[yeokiwi]

I will sell when I buay tahan the performance. Since performance is relative, the non performing stocks will stick out like sore thumbs.
Or someone forces me to sell aka delisting offer.

[Temperament]

Here's a recent example regarding Valuetronics:

1) Directors sold off 26 mil shares in March at 24 cents.

2) Q1 results ended 30 Jun reveals termination of licensing business due to losses.

3) Target price gets downgraded by KH from 31 cents to 16 cents.

Sorry, think may have caused some confusion. Just to clarify that I meant that a good time to sell it is when the directors sold their shares.

Most of the times are correct. But this time maybe some of the directors need some cash for their own reasons.

[smallcaps]

It might exist (right time to sell) but I personally have not learnt how to do it after investing in penny stocks for more a decade...

Just my opinion, that maybe it's more important to know when NOT to sell, assuming much effort was put into selecting the company for investment in the first place.

It is irrational to assume the effort you put into the selection, will make the stock more valuable i.e. NOT to sell

The decision to sell, or NOT to sell, should depend on fundamental, rather than depend on buying price, effort and emotional factor of the stock

Of course, to understand that is easy, to execute is difficult.

Think my post was probably too vague (not very good at expressing my thoughts, i guess).

What I wanted to highlight is the level of conviction one has in a stock. It is IMO important to realize at which level that conviction should be (maybe from a scale from 1 to 5?), especially when pitted against an environment that is shouting at you to sell your shares.

[Temperament]

There are actually many reasons to sell for each of us. But no matter what's the reason, the best is when we sell, we should have a profit. That is the gist of selling. MHO.

[Traumfanger]

For Long Term stocks, I sell when the original reason for buying and holding the particular stock is no longer true. For eg.

1) Yield Stocks - Yield has dropped below my target threshold either due to Price increase or reduction in dividend payout
2) Growth Stocks - It'd either stopped growing or I was wrong
3) Biz Change - Either thro' diversification, RTO, ...

Another reason for me to sell is when I have limited free cash and I see a better opportunity. In that case, I'd sell one stock to switch to the other stock.

The only resemblance to a 'take-back-cost-by-selling-some+div' kind of accounting recognition is for my Short Term Trades. In such a case, I'd treat my cost as Buy - Dividend collected to compute my breakeven Sell Price. I don't usually buy a stock for short term trading but I may suddenly decide to sell it cos' of the above longer term sell reasons. Hey! I'm wrong often and the best thing to do is.. SELL!

For the long term stocks, dividends collected or even profits from partial selling is never part of my accounting recognition to reduce the cost recognition of balance holdings. Every year, I compute my portfolio P/L including dividends and every new year, I start from a clean sheet ie. past realised profits + div is considered... PAST!

Words in bold

[nitro]

Anyone practises selling

when the counter reaches 52 weeks high? If there is sustained volume, just continue let it run, sell when volume is falling? If it is a value stock, buys back again when the price drops again.

[smallcaps]

Anyone practises selling

when the counter reaches 52 weeks high? If there is sustained volume, just continue let it run, sell when volume is falling? If it is a value stock, buys back again when the price drops again.

Not me but Walter Schloss considered the opposite when buying (Rule 10):

http://www.scribd.com/doc/80466887/Walte...-Investing

[Temperament]

Anyone practises selling

when the counter reaches 52 weeks high? If there is sustained volume, just continue let it run, sell when volume is falling? If it is a value stock, buys back again when the price drops again.

Not me but Walter Schloss considered the opposite when buying (Rule 10):

http://www.scribd.com/doc/80466887/Walte...-Investing

One possible way is:-
We can let our profit runs and runs by setting a 5-10 % stop loss for internet trading sell order.
But unfortunately we still can't set our own sell stop loss order.
We still don't have this feature in SGX. Right?
Does HK. EXC. have it?
Don't trade in HK. EXC.