A decrease in the price of the stock

Oluwasegun purpose

Active member
1) when the stock drops
If you trade, which means that you are interested in short-term profit,a drop in the price of a stock by a particular percent means that you should sell the stock.. when you have bought the stock you have set a floor for the stock, which typically ranges is passed from 8%to 9% from the current price.if this range is passed it is better to sell the stock and minimize the losses...
2) when the stock is expected to drop
it is possible for the value of the stock to be inflated..this means that the price of the stock is about to fall ..if your stock is experiencing this, it's time to sell it and wait for the correction of the market to move to the price down.. when this happens you can again purchase the stock, but only if you still consider it a profitable investment...

on the other hand,this tactic requires a good knowledge and feeling of when the price of a stock has reached its peak and is about to fall.. Additionally,it is always better to sell a stock that is overvalued than purchasing such......
 
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