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LORD JESUS CHRIST SAYS

So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For the pagans run after all these things, and your heavenly Father knows that you need them. But seek first his kingdom and his righteousness, and all these things will be given to you as well. Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.

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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