If you are investing in a stock but can not earn money and you are only losing money, you should seriously consider selling your stock.
Especially if the stock is wrong, you have to sell it as soon as possible. If you have the following three things, you should seriously consider selling stocks.
1. You can not sleep at night.
The reason for investing in stocks is to make money. You want to make money and enjoy a better life. But if you get stressed while investing in stocks and you do not sleep well and your quality of life drops, why should you invest in stocks?
If investing in stocks reduces the amount of time you spend with your family, and you become more stressful and unable to sleep, you should seriously consider selling your stocks.
Stock markets has fundamentally votality. If you do not have the guts to overcome this volatility, you should not invest in stocks. Instead of making money, these people can lose money and lose their health.
2. They buy stocks with incorrect investment analysis.
In spite of investing heavily in the investment analysis, it often happens that after buying the stock, the analysis is wrong. Sometimes you get bad news that you did not know before buying stocks.
In addition, there are some cases where you bought a short-term theme to buy short-term trading gains. In any case, if you believe the investment is wrong, you must sell the stock.
Despite the wrong investment, many people continue to hold stocks because they do not want to see losses. But in most cases, the loss is bigger, and you can not even sell it boldly.
If you believe that your investment is wrong, you should dispose of the stock without thinking about the loss.
3. The valuation of stocks bought is too expensive.
Sometimes, After buying stocks, corporate fundamentals may deteriorate. There are also times when stock prices surge for no reason. In this case, valuations will be higher than at the time of buying.
Regardless of the performance, if the stock price drops or rises without reason, and the valuation changes, it is a signal to sell stock.
Changes in valuation that can not be explained logically often result in large losses.