- Joined
- 4 October 2016
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Hey guys, I am just curious to know your rules when to sell a stock? Like I have heard when it becomes overvalued or things like the stock doesn't align with your goals, or something in the company has changed etc. But the other one is if it falls by a certain amount I seen this guy say if it drops 10% he sells it, but then I hear other stuff which says buy more its cheap (this depends obviously not every price drop is going to mean its cheap. But if it is beneath the intrinsic value wouldn't it make sense to buy more?
Like I understand in investing you need to take the emotion out of it, and was watching a Martin Skhreli video (he is a stock investor) and says have rules if its 10% make it 10%. But wouldn't you want to buy more if its beneath intrinsic value? He said something like if it drops a certain amount you should think "where did I go wrong?, was my analysis wrong?" but in the short term shouldn't you just ignore prices drops 10-20% etc? Fair enough if over 10 years the stock price is doing crappy. Also one last thing just because it did drop say 20% that doesn't really prove your analysis was wrong imo, am I missing something?
Like I understand in investing you need to take the emotion out of it, and was watching a Martin Skhreli video (he is a stock investor) and says have rules if its 10% make it 10%. But wouldn't you want to buy more if its beneath intrinsic value? He said something like if it drops a certain amount you should think "where did I go wrong?, was my analysis wrong?" but in the short term shouldn't you just ignore prices drops 10-20% etc? Fair enough if over 10 years the stock price is doing crappy. Also one last thing just because it did drop say 20% that doesn't really prove your analysis was wrong imo, am I missing something?