Bioman21
06-14

Someone posted a question lately.

Should we hold on to our losing stocks and sell away our winning stocks?

I am having the same mentality as most investors. I will not sell away my losing stocks easily but will sell away my winning stocks once I have made around 5% to 10%.

I started to question myself and this is my personal opinion only:

1. Look at Nvidia. When the price reached $500 per share last year, my colleague asked if he should sell. I told him he could take the profits already. Low and behold, it broke $1000 and reached to $1200 before stock split.

We really have to look at the fundamentals of stocks before making decisions to sell or not. Nvidia is a market leader in GPU currently. Most companies which wanted to provide AI services have to buy from Nvidia. Once the monopoly of Nvidia is slowly eroded by other companies, it is good to sell off.


2. If a company keeps making losses and the share prices keep dropping, do you think it is good to carry on holding this kind of stock?

Look at Keppel Pacific Oak US REITs.

My colleague asked me about my view od this company. Prices started to drop before COVID. After COVID, it dropped further. My colleague told me that the dividend yield is good as price dropped. Dividend yields typically increased before dividends are cut.

Prices dropped and dividends also dropped.Dividend yield is back to square one. Presently, this REITs informed investors that dividends will not be paid. Dividend yield becomes 0%.

Personally, I believed in selling away losing stocks and use the money to buy into companies that have more potential.

Investing vs. Speculating—How Do You Balance the Two?
Take a look at your own portfolio—are your top performers driven by long-term investments, or were they more speculative plays? So, how do you divide your portfolio between these two approaches? What’s your balance?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Happiness.
    06-15
    Happiness.
    I agreed. The reason is that not many luck companies like the mag 7 especially Nvidia for sure to grow when it is just still developing You just cant be sure. So, investors can sell when it’s hugh to protect themselves because it can drop. Also, potential companies are having a chance to be invested as well and make same profit or more. At the end of the day, I really think doesn’t matter what you did but be happy and not too greedy.[Great]
  • Gabe_
    06-14
    Gabe_
    I agree that selling losing stocks and buying into companies that have better potential. Also, when you a profit target is hit, its good to take profits regardless of the stock movement. Better gain than losing!
  • PEPE
    06-17
    PEPE
    If you buy a stock like Nvdia which is a long term investment, I think you have to ignore the ups and downs. If its on an uptrend and you sell to take profit, you may not be able to get back in at a lower price. I found out the hard way that its better to hold the stock and ride the wave, unless you are a trader.
  • JQC
    06-16
    JQC
    Agreed 👍
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