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Prav | Shares I bought, should i sell or wait it out? |
I bought shares in 2 companies that have subsequently fallen in price due to fall in copper and oil prices. Should I cut my loss and sell now or wait it out? I dont need the cash but find it disheartneing to see their shares falling each week. |
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Dr. Daniel
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No one here will be give you valid recommendations on what do do, but there is one question you can answer yourself that will tell you if it's time to liquidate.
1) What was your original premise or predicted catalyst for purchasing the stock?
If that premise for your original purchase is still valid, then your trade isn't over. This means conditions you specified for the purchase are still occurring, and those conditions haven't changed. If this is the case, then don't liquidate, because things are still set up for a price gain like your original thoughts. If not, you may want to liquidate.
If there was a predicted catalyst, did that catalyst occur already? If this is the case, and it has occured, and not the prices have declined, you original reason for buying the stock has disappeared, and it's time to liquidate. If it has not occured yet, then your investment premise is still being worked out, and you shouldn't liquidate the stock
If you want to chat about the market, I'd be gald to talk toyou on AIM, my screen name is WallStGolfer31 |
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brian p
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Depends on which companies youhave invested in
Hindalco, Sterlite, for copper, they are excellent companies and have a great future.
Oil companies, ONGC/ Reliance, Great companies sitting on huge oil and gas reserves, besides Reliance is a huge SEZ, Retail play, They have great futures too and will create a lot of wealth in the long term
Oil Marketing companies HPCL, BPCL, Indian OIl etc?
Very profitable companies and PSU giants, unfortunately having to take the burden of Oil subsidies. Will do well if the Govt increases petro product prices and Crude prices drop. However these are subject to too many variable risks.
You may get out of these and invest in ONGC , Reliance, SBI, ICICI bank, BHEL etc these too are great companies |
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muncie birder
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It is rather disheartening for certain when your investments head south. Generally, if you are loosing money on an investment you should set yourself a goal of how much you will allow yourself to loose before you decide to liquidate. That will protect yourself from the problem that once a trend is in motion it tends to stay in motion until an external force acts to change the trend. In the case of oil stocks and copper stocks the trend is falling prices. With a softening economy, there does not appear to be in external forces to change that trend. |
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sushobhan
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since u dont care 4 the cash, u could stay invested for 30 yrs and there'd be some profit
but metals is a very risky sector. sell. and buy something from a better sector (avoid FMCG, Tech is good) |
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keral
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you will wait for increase |
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dinu_pawar
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chek buy sell signal on
aptistock freeware
& trade accodingly
dont go 4 long term investment
details on my blog |
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vegas_iwish
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No. Likely to rebound + should not be over-trading. I have some too but as part of a diversified portfolio. When they go down others go up. |
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?
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for current scarp metal prices which will give you a good indication of where prices may be going go to Demolition, Scrap Metal and Salvage News http://www.demolition1.blogspot.com |
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brentbarkin
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If you have made money on them and they are short term gains, keep in mind, money earned is still MONEY. Both of the companies that you refer to are commodity dealers, and make money due to wild fluctuations in the prices of those commodities. If you think copper and oil prices are going to keep going down, sell if there is not a major tax implication. |
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Sunita B
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wait for atleast one year. u will get 50% returns |
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Narayan
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dont , becuase already we are facing inflation which means your value of rupee is gon down .........................you can consume less no. of items in same rs. |
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ronb48146
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did you do your homework? If you liked them then, you should love them now!! BUY MORE |
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shoki20007
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Howsoever you have not mentioned the name of the companies but the share market scenrio is very good. I suggest you not to liquadate the position and the hold the share for another one to two years and you found that you will get more than the double price from here. |
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