Wednesday, April 13, 2005

When To Sell A Stock!!

Different percpective On Selling Stocks- I donot agree with all points.

1. Sell when the stock falls 7% or 8% from the purchase price.
This works as a good insurance policy against serious losses.

2. Sell when the stock makes new price highs on low volume.
This is a good way to tell if a stock is stalling and probably
peaking.

3. Sell when stock's Relative Price Strength Rating falls below 70.
This IBD Rating helps determine if a stock is still acting like a
leader.

4. Sell when stock goes up too high, too fast.
Most great stocks end their long advances with a "climax run."

5. Sell when the stock's 200-day moving average trends lower.
With the right chart, this technical signal is easy to spot.

6. Sell when the industry leaders start struggling.
Keep an eye on your stock's leading peers. If they falter, chances
are your stock will too.

7. Sell when "distribution" hits the major market indexes.
A series of declines on heavy volume means institutional investors
are exiting the market.

8. Sell when earnings growth slows down.
Without earnings growth, stocks lose their primary fuel.

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