It is human nature to be indecisive when one is weighing different options. Should I take profit now or wait for the price to possibly move up further? Should I cut my losses or wait for the price do a possible rebound later? These are questions prevalent among investors and traders alike.
A slack off in profit margin after consistent increment year on year, a dividend cut or signals given by the creditors that a company may not maintain its dividend payout are signs of deteriorating fundamentals. A fundamentalist's text book would tell me to sell on news that would negatively impact the fundamentals of the company.
I don't completely agree with this.
The securities market as I have realized is very sensitive in reflecting information about individual stocks. Any official financial reports out for a stock will be incorporated immediately into the prices of the stock without delay(theoretically speaking). ......