10 Reasons to Sell a Stock

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One of the most common questions i get in the comment section of videos is when to sell a stock well today i’m going to share with you guys the ten ways on how i decide if i’m actually going to sell a stock i cannot wait to share this with you guys today good day subscribers thank you so much for joining me today i am jeremy this is the financial education channel

And today we’re talking about when to sell a stock guys i’m going to take you through the 10 ways on on basically how i decide to sell a stock or when to sell a stock because there’s really only ten situations on when i would actually sell a stock so it worked out perfect here today guys so i’m going to really enjoy sharing this with you guys do you ask it so oft in

The comment section and so once and for all i’m going to do a video about it and answer all your guys’s questions here so i hope you guys enjoy this video stay hit a thumbs up if you do and let’s get into this guy’s number one one of the first the first way i know when to sell a stock is if the stock goes up a lot and it becomes overvalued overvalued if it becomes

Overvalued in my opinion then it’s time for me to sell those shares so buy overvalued every time i go into a stock every time i buy a stock there’s like a price i have in my head of you know if this stock hit such in such a mount within this certain amount of time i would probably sell it like that’s what i have in my head and if it gets to a p/e ratio that’s too

High based upon the growth rate so maybe say say it gets to a thirty pe or yet they’re only grown revenue and profit and maybe a 10% rate per year might not be a stock am interested in at that time because that might be overvalued in my opinion so if a stock is overvalued and it goes up a ton i just get out of the guy especially if it’s in a really quick amount of

Time i mean i’ve had i’ve been fortunate enough to have some stocks that held over time that i invest in them and then they go up 20 30 40 percent in a matter of a couple months and i’m like okay this is a way bigger gain than i ever expected in such a quick amount of time it’s time for me to get out of that stock so that’s the first way i can decide on i’m going

To sell a stock guys number two if the fundamentals of the underlying company change and you do not like them then that’s probably a time to sell the stock if i’m ever in a stock and the fundamentals of that company changes and i don’t like for the fundamentals are going to that company the underlying business we’re talking about and it’s just time for me to get

Out flat-out guys it’s time to just say you know what that one you know even if we took a loss that was a bad come clean you know it’s time to get out if the fundamental change of that company and they’re going in the wrong direction in my opinion it’s no shame in the game we’re just getting out of it because that wasn’t a stock you went into in that first place

Guys and sometimes that happens sometimes you’re in a company and you know their business models a certain way and then also may change that business model while you’re invested in for one reason or another could be outside pressure from other investors or big investment funds it could be a lot of different factors guys or it could just be bad business plan if

It changes and you’re like i didn’t see a future and that type of business model it’s no shame in the game of selling that stock and getting out guys so that’s the second way i know when to sell a stock the third way is if i have a better stock to put the money in the bottom line is i love my money place in in the best companies possible i like to be a little bit

Diversified you know i hold always between generally speaking generally speaking between two and about six stocks depending on the time so i’m always a little bit diversified but at the same time i want my money in the best stocks possible so if that means if i’m holding shares of a certain company and i think that money could be better put toward another company

I put the money there so even even if i’m you know if i even if i think the other one has good potential i’m still going to put the money in the other stock because i the way i do it is i got to put my money in the best position possible to make money so if i think stock abc has a better future then stock xyz i’m going to put an abc eyes that’s the bottom line

You know i’m going to put the money toward the best stocks possible and that’s just the way i think and why am i going to hold a company if i think you know it’s just a good stock versus this one’s like the best deal i’ve ever seen type situation guys so that’s the third way i know when to sell stock if there’s another company i think that the money should be put

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Toward i go ahead and sell that other company and put the money toward the one i think has the best future number four if you feel your company has a major competitive threat that’s about to come online that’s going to really hurt the business model this can happen in tech often guys this can really happen in tech a more than probably any other sector a competitive

Threat comes in you know an apple a samsung someone like that that has a lot of power and they can really hurt an electronics company if they come into their space so in that’s not just that is the many different sectors guys so you’ve got to watch out for those competitive threats out there that if there’s one that you’re thinking man knack that that company has a

Great product or a great service or something that you can really knock my company off might be time to sell it so if you’re ever just in that situation like that companies they’re looking like they can beat us then you might want to sell that stock because y-you want to be in our stock debt has a major competitive threat like that if you think that other company

Has a good chance of taking market share for your company guys so think about that one number five if you feel a recession is right around the corner you may want to sell stock now this is a hard one use you got to be really really freaking exact you would be like 99% sure that a recession is coming to actually go ahead and sell all your stocks or sell stocks in

General and speaking you’ve got to really be sure that because there’s always threats out there and i talked about this on so many videos in the past guys there’s always threats out there there’s always what if a terrorist attack happens what if a major you know what would have a major bankruptcy happens or one of the big financial institutions something like that

There’s always like threats out there that could take down the economy what if this policy comes into play what would happen to the economy there’s always threats guys so you’ve got to be really really freaking sure you know a recession is actually coming or stock market crash is coming to actually sell your shares or so all your shares guys so but at the same time

If you really are like 99% sure rumors then that makes sense to sell stocks guys and i would sell stock if i ever felt like we’re going to be on the verge of a recession about to start i would get out of stock absolutely or if i felt like nana’s of the big crash she’s coming i would get out of stocks has no question about it so that’s reason number five reason

Number six if the management of that company if their tone changes and i mean kind of changes negatively that’s a big one to watch out for guys from give you an example of a company i’ve been invested in the past and done extremely well in the company named cirrus logic ticker symbol see r us crews cirrus logic is the main audio chip supplier for apple through the

Iphones right and for a lot of the ipads and some other devices apple has but they’re mainly an iphone company they get around 85 to 90 percent of their revenue from apple from apple so when i would invest in that company it was very important for me to listen to what the ceo was saying how the tone was coming out because thing with cirrus logic in their contracts

With apple they cannot talk about specifics with their relationship they can only talk about general a letí’s or general is that even a word generalities they can only talk about general terms and whatnot they can’t talk about specifics of oh yeah we’re going to get dropped out the next iphone or something they can’t talk about that so you have to really listen

To the tone of what the ceo is saying and how’s the tones down you listen to that and then you can get some clues about okay things are so really good with them the you know the design activity and whatnot is ongoing or you know what i think i fear something so if management tone changes and also know was a negative tone then that lightning it might be a stock you

Need to start to get out guys so pay attention a lot of those psychological things take some psychology classes you know if you haven’t already you know even if you’re not in college i how you can just take some psychology classes because it can certainly help you if you can read people and those kinds of things as it’s like legit work because it’s very important

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In your investing to sometimes tell us somebody’s bs and somebody tell them the truth and tell those little variabilities in there tony things like that guys so pay attention to that number seven here number seven if a lot of insiders and by insiders i mean executives in the company if a lot of them are selling left and right they’re selling shares left and right

Might be a little clue of mess something’s about to go wrong that stock if the ceo welcome selling shares a bunch of shares in cfo and a ceo oh and the cio and all these guys and gals that are executives of the company falls and they’re selling shares left and right should be a sign that man maybe something a bad is about to happen i have talked and it’s not a

Perfect thing like just because it is inside or sell what stocks can go down or the companies that struggle or something but many times i’ve seen it where executives start getting out and i’m also in about a year later often something happens with that company that they really start struggling with so keeping an eye on the executives and what their sales and buys

Are it’s really important also if executives are buying heavy sometimes that’s a sign maybe you should buy a perfect example wynn resorts wynn resorts was a $240 stock you dropped all the way down to $52 awesome what happened i actually dropped a little blow $52 i think it dropped to $49 alston announcement came out steve wynn bought like 10 20 30 million dollars

Worth of shares then the stock went up a bunch off of that basically and then it got announced again he bought a whole bunch of shares in nowra bev stock is it’s $95 about a year later so it went up massively since that so he knew that was kind of the bottom he knows the company very well you should know better than anybody ever in the industry in history the casino

Industry so that might have been a find that wow steve wynn’s buying tens of millions of dollars of shares hmm i’m pretty sure he wouldn’t just put that money in her company if he was stupid that’s probably a good i find that maybe i should be buying at this point guys so pay attention insiders it can help you immensely but don’t don’t go so overboard with it that’s

Just because somebody sells you’re like oh i need a seller just because someone buys you need to buy it’s just something to pay attention to and then value that in your whole valuing of a number eight here guys if the company is taken losses that they’re leaving money and they’re at a real risk of bankruptcy might be a sign that you need to get out of that stock

And and this would never happen if you would do what i do which is my one of my main themes and moderate long-term investing is the balance sheet and making sure they have plenty of cash on the balance sheet investments versus debt and those kinds of things so you would never be in that situation but let’s assume you just don’t care about balance sheets and those

Kind of things in your company’s taking losses and if that company is getting close to bankruptcy or you even like a father and this company might go bankrupt or maybe could go bankrupt might be a sign you want to get out of that stock guys and his diet was never in that position which i’ve never been in that position because i value the balance sheet so much i

Would get out of that stock for instance go pro right that’s a stock that they took huge losses this year they lost a massive amount of money they took huge losses because the layoff they did and all those kinds of things and a lot of different factors a recall is rome they took huge losses but because i value the balance sheet so heavy before i even got into that

Investment i saw how much cash you had i saw how no debt they had i said that’s a great balance sheet so even if they continue to have a struggle year in 2016 which they did throughout my investment and currently it’s okay because they’re alright they’re going to survive there’s no like risk of bankruptcy because they had so much money on the balance sheet as long

As they could turn the company around so if you’re ever in a company situation where maybe they all sudden start taking losses and you didn’t value that balance sheet that’s a scary time to be in guys and that might be a sign to sell number nine if growth and the company slows way down so many times i’ve seen it where a company’s high-flying and their growth is is

Just parabolic if you know something about these companies like an amazon talking about companies like a netflix the test book go pro at one point fitbit at one point some of these stocks apple at one point that we’re growing super fast and then all of a sudden though that one quarter they showed us nature slowly and growth and the shares died so you’ve got to be

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Really careful for that guys on a company that majorly slows down if you’re not ipe stock if you’re one of those high growth stocks and also growth stocks i mean amazon’s growing revenue right now i like 20% a quarter if they all son went to like an eight percent revenue group that stock would take a massive tumble over the night guys and just continue to take

A tumble you got to watch out for any companies that if you’re in a multi-piece ox watch out for it guys watch out for taking that tumble if the growth slow that might pay fine you just need to get out while you can because if especially if you don’t think that growth is going to somehow recover very soon because then what happens is a lot of those investors that

Were invested in growth they go away from it right and then the value investors don’t come and quite in yet because they want to drop more so it makes a value proposition so you got the growth investors selling out you got value investors waiting until they get to a certain point and then finally once it drops a massive amount the value investors like okay this

Is a good value for us now we can start buying it guys so that’s how the game plan goes there guys number 10 if a stock is in an industry that’s facing a lot of political pressure on the industry might be fine you want to get out another perfect example was the second time we talked about wind resorts in this one and this is a phenomenal example for this one guys

When resorts was a stock if for you guys don’t know it’s a resort company that some of the best resorts ever move agus and macau well macau is where they got 70% of our revenue from is the most important mark because i mean it’s insane how much people gamble over there and whatnot so numbers of stock there was over two hundred and forty dollars at one point and this

Was in about 2013 – maybe 2014 early so what happened is all sudden the chinese government decided on the whole macau market they were going to start a big corruption ban the big corruption ban and trying to get corruption out of the macao system and money laundering those kinds of things well that was probably the sign that it should have been like anybody that

Was invested in win or any of the macau stocks at the time she said i need to get out of this i need to get out of industry right now because under a ton of political pressure that’s about to come down on us it was a big sign in the chinese government was very forthright and warning about this we’re going to come here and crackdown this corruption sure enough it

Did look how revenues went from oh gosh it was like 70 billion dollars or something like that to like 40 billion or 38 billion per year it dropped drastically all companies in macau all companies their profits got slash some in half some by 60 70 percent guys massive amounts stocks like wind drops from wind from 240 bucks to a $50 stock in a matter of less than two

Years guys less than two years so if you’re if you’re in a company that’s under a ton of political pressure or there’s a huge political threat out there guys and it’s a serious one it’s not just by some kind of joke one might be a sign you need to get out and sell out of that stock guys so these are the 10 ways personally that i judge a stock in on if i should sell

Out that stock in sell that stock dies and i hope this helped you immensely and all you guys that ask these questions all the time a comment section you know should i tell stock in mostly most the time it’s when you guys are up you know 20 30 percent on position or something you guys make great on it you’re like i just we’re not a bunch i sell out those kinds of

Things and and i don’t really give you individual advice but this is this is how i personally judge stocks and how if it’s one of these criterias i’m probably getting out of them probably fell on that stock guys so i hope you enjoyed this today hit a thumbs up if you did leave me a comment if you have any questions or refuge’s my comment on the video in general i love

To hear from you guys in that comment section if you just came across this channel you’ve not subscribed yet you may want to we talked personal finance which you know we talked entrepreneurship on the channel on my actual business owner i give it away a ton of my business tip we talked the stock markets i’m most in the channel how’s everything thank you guys and have a great day you

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10 Reasons to Sell a Stock By Financial Education

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