- a) If they buy more, the stock may drop after their purchase;
- b) If they hold (i.e. not buying or selling), the stock may appreciate or drop further;
- c) If they sell, the ...
Typically, when you read an analyst report, or a news article on a company, or when someone asks you to take a look at a stock with promising prospects, the decision to buy is usually easier, as you are buying on the prospect of potential gains. After your purchase, if the stock subsequently appreciates, or slumps, or stays around the same level for some time, you may wonder what to do with your existing stocks.
Through my work as a remisier, I have received extremely frequent (and rather standard) questions from my clients (or sometimes readers), whether they should buy more, hold or sell their existing stocks. Some of the situations which they are worried are