Hi guys.
Tech stocks went down a lot and I am afraid that they might go down more and wipe out a lot of my gains.
i keep hearing it’s because of rotation.
What do I do then? sell my tech stocks and buy other stocks now or wait for them to go back up again.
thanks a lot.
Impossible to answer. The S&P is down 0.9% today. Its up 17% this year.
Gambling is fine, but like Blofeld always have your escape route pre planned.
Couldn't agree more. All this does is highlight your lack of plan/strategy. I'm not trying to belittle as everyone is trying to learn, including myself.
Whilst my own plan and strategy isn't perfect, and I'm still a learning as a novice investor, I buy stocks for 'x' reason and make a note.
If its a gamble, I highlight as such and set a stop loss or alert at when I would get out or take profit.
If its a long term trade I highlight where I will be taking profits, usually around key areas or new highs.
This all comes down to the fact of why you bought the stock in the first place. If the price is falling, but the stock reputation is still high, and nothing has changed, then it *could* be seen as a bargain price.
However if it's a stock that has given poor financial update or its market has changed, then you may want to get out quick. Only you can decide this.
If youre referring to market cycles, then yes they do occur and can be easily found online. However these are only a guide.
Best advice, do more research and come up with a clear trading plan/strategy.
No matter what, you have to take some profit along the way. If the gains are so good you want to brag about them, you should take some profit. No one gets rich by watching a stock do a 10x and return back to what they bought at, without taking some profit along the way.
Spend some time in selecting a strategy which suits your personality, circumstances and the amount of time that you can spend on conducting the required share and market analysis. The strategy should give you pointers as to when to buy and when to sell. What to do about your holdings now? It doesn't have to be sell all, or hold all. A moderate approach when you have large gains, but are worried that there are likely to be market falls in the near future, would be to top slice your holdings. That way, if the market falls, you have crystalised some of your profits. If the market continues to rise, then you still are likely to benefit from it due to your remaining holdings.
No matter what, you have to take some profit along the way. If the gains are so good you want to brag about them, you should take some profit. No one gets rich by watching a stock do a 10x and return back to what they bought at, without taking some profit along the way.
But then no one got mega rich taking all their profit on Apple, Microsoft or Amazon within a short time period. It’s all about understanding the quality of your holdings.
Whilst I agree, I never said to take all your profit!! I've seen too often people saying how much they're up, and then the stock dumps and they didn't take any profit along the way
Howard marks stressed knowing how to value stocks, or indeed anything. If you can't come up with a value or even a range how do you know when to buy, or sell?
That's not to say it's exact and obviously everyone comes up with different values for the same thing - that's what makes a market.
