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LORD JESUS CHRIST SAYS

“Ask and it will be given to you; seek and you will find; knock and the door will be opened to you. For everyone who asks receives; the one who seeks finds; and to the one who knocks, the door will be opened. Matthew 7:7-8

25 Jan 2017

SHARE MARKET-- REASON FOR SELLING SHARES

Hi friends, though we primarily advocate long term and buy and hold investment strategies, this does not mean that shares should never be sold. Change is the law of life. There is no share which can be bought and forgotten forever. What was a good buy last year may be a better sell a few years hence. Therefore, selling decisions cannot be avoided altogether. The long term or buy and hold investor can postpone and restrict selling decisions in his overall investment strategy, but he cannot eliminate them completely.


Selling becomes necessary when you find that you have made mistake in your initial selection of the share. It enables you to rectify your mistake and cut short your losses. Your investment portfolio needs to be periodically reviewed and constituted by selling shares which have outlived their usefulness and have no further growth possibilities. Apart from enabling you to get rid of such dead wood, selling will provide you with an opportunity to adjust your portfolio to changed economic conditions, switch over from slow-moving shares to fast moving shares, and from sunset industries to the newer, faster growth sunrise industries


Selected periodic selling will enable you to take advantage of market swings and new buying opportunities. Selling also becomes necessary for regular adjustments of capital losses for tax purposes. Sometimes selling also becomes necessary for providing regular spending money or for meeting unforeseen expenditure.


Thanking you,        See you tomorrow with a share recommendation.

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