How long should you hold a stock before selling, if trading in the short-term?

mackdan

Newbie
7 0
I've recently brought a share but it has drop down in price. But from the strategy I'm applying, I feel that it will go increase as the professional traders have targeted it to increase but it hasn't done so far. I'm now thinking to sell it but feel if I do it will suddenly increase.

What the maximum time you should hold a stock before selling, if trading short-term?
 

tomorton

Legendary member
7,371 995
Its cheap and quick to sell a share and buy it again later. Is there really no other share that might make you money while you wait for the market to realise you were right?
 

sminicooper

Experienced member
1,148 326
Its cheap and quick to sell a share and buy it again later. Is there really no other share that might make you money while you wait for the market to realise you were right?
That's good advice. In answer to the original OP there is no particular length of time that you should hold a share: when you think/know the trade is no longer viable it's time to get out. With experience & when eventually you've got a good hold on your own style of trading, you will know when to get out. It's all part of the learning process and it takes time.

........ of course, you'll still have to learn to overcome the psychological problem of doing what you know is right rather than hanging on in the hope that the trade might improve!
 
Last edited:

Mr. Charts

Legendary member
7,364 1,181
What do you mean by short term?
Is your judgement about it rising in price based on detailed knowledge of the company or the sector?
Fundamentals?
Technicals?
Any upcoming results, announcements?

Get used to being wrong. It happens in investing and trading. The three cardinal sins in trading are wishing and hoping and "knowing" you are right when the market says otherwise.
Keep losers small and let winners run, maybe scaling out to lock in profits and keeping some of the position.
Diversify over different instruments (not in the same sector)to minimise risk.

Your question suggests you are more interested in being proved "right" than in making money and minimising losers.
 

mackdan

Newbie
7 0
Yh I guess (Mr Charts). You need to take losses and learn from them to start winning! Thanks.
 

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