Deciding When to Buy, Sell or Hold Stocks

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Deciding When to Buy, Sell or Hold Stocks

Marguerite Cassandra Toroian

· Stocks

Marguerite Cassandra Toroian is the managing partner and majority owner of a capital market company that she established in 2006. She possesses over 20 years of asset management and equity research analysis experience. Previously, Marguerite Cassandra Toroian worked as an equity research analyst, helping clients determine when to buy, sell, or hold their stocks.

Deciding when to buy, hold, or sell stocks is dependent upon various factors such as learning about the company's financial strength. This can be done by checking the company's quarterly financial statements, which they file with the Securities and Exchange Commission (SEC). As an analyst, you can access this information on the company website's investors relations page or the SEC website.

It also important to determine an entry point (where you buy stocks) and exit point (where you sell them). Establishing these points in advance is always ideal to maximize returns while minimizing risks. It will also prevent you from making emotion-based decisions.

You can also utilize stop and limit orders in minimizing losses and maximizing profits. Consider setting up this order to help you exit or enter according to your investment plan since it dictates the amount of stock to be bought at an exact price or once it attains a specific rate.

Furthermore, you can use technical analysis to examine an asset's previous patterns and trends available on charts to help you decide when to buy, hold, or sell stocks. You'll need to determine if the stock trades millions of shares daily, is a small traded stock, or whether the volume has decreased or increased recently to help inform your decision.