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Thursday, October 28, 2010

Let's Start Buying Stocks! Step: 3, Post 2

Now that you are tracking your stocks, you have to watch for a time to sell them!

Most of the time, an investor looks at trends in the stock. You watch for events that might push the stock higher. For an example, most stocks like to gain anywhere from 10-20% or farther right after an earnings release (if they actually made money :D).

Look at the picture below:


As you can tell from this graph. Towards the end it is very visible when earnings where released! It is show by spikes in the stock followed by a period of calm etc.

As in the example above you want to sell when you have made money! Always sell when you reach what your initial goal was. If you are lucky enough to have your stock double, sell off what you put in, don't be greedy, that never end up well!

If you want to send me 2 cents click a link! Look forward to my next post!

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