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Revisit: Knowing when to sell your shares
By Rainbow Coin  •  March 9, 2016
[First published on 3/9/14] Below is an article by Motley's Fool. It was a burning question in me when I first learnt about investment. http://www.fool.sg/2014/03/03/when-is-it-the-right-time-for-you-to-sell-a-share/ "Buy because of the price but don't sell for the price. Sell because it's value has depreciated or there's a better value investment elsewhere to park your money." In essence, it's time to part with your shares if either of these happen...
  1. P/E ratio goes sky high
  2. P/B ratio goes sky high
  3. Erodingfundamentals of the company
  4. Poor outlook of business sector eg. competitive edge has worn off, declining industry
I have to add one more - 5. when market sentiment is turning bad, share prices can't break through long term resistance and start to break through support. Why? So that we can do fruit picking in times like this. The game of patience in stock market is not how long you hold onto your stocks ......
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By Rainbow Coin
I began exploring the financial world in year 2010, hoping to get out of the rat race and be financially independent. 2010 was the aftermath period of the Lehman crisis when a pretty shaken up market was struggling to recover. On hindsight, that was the perfect time to catch multi-bagger stocks should I be a veteran or at least had some basic knowledge of picking up 'gems'. My learning curve was steep then, as I have absolutely no friends or relative who could shed some light on what's investing about.
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