iBankCoin
Home / philoscarson (page 11)

philoscarson

Three Essential Rules for Stock Prediction

Most people get into stock trading as a way of diversifying their investment portfolio. When you do stock trading in the right way, you will be in a position to do more than just make some extra cash, and you could, in fact, become a millionaire. However, to get to this point, you need to learn about stock trends and always make sure that you have an idea about what could happen in the future. The easier you can keep up with the trends, the more beneficial stock trading will be for you. Here are the rules to follow when making predictions.

 

Understanding data points and direction

When studying trends, you always have to ensure that they have at least three contact points. Of a trend only has two or less contact points, you are likely to lose if you follow the trend or make predictions based on it. When it comes to direction, it is possible to have a chart moving in any direction that you want, as long as it allows for the appearance of all types of trends on the same chart. At the same time, think carefully about the slope of the trend. If the slope is too sharp, it is less likely to be sustainable. On the other hand, when a trend is too flat, it may not have the necessary predictive powers.

 

The importance of time in trends

The validity of a trend relies heavily on time. Capitalize more on monthly time series because they carry more weight than weekly and daily prices. Another thing you need to understand is that when a trend remains in force for a long period, it will carry a greater weight than those which come and go. If a trend has been active for a long period, it will give tougher resistance to rallies than those that have been around for a shorter period.

 

Analyzing the hot stocks selling high

When starting out, you need to do your research well and pay attention to the hot stocks which are growing. Ensure that you stay with the stocks until they reach their predicted heights before selling. Remember that you are allowed to buy and short-sell or do a covered call depending on the situation.

 

These are some of the considerations which you have to make when venturing into the stock market. It is important to ensure that you consult experts in trading before making any important decisions.

 

Embrace new technology

In the past, the best hope that you had at making a profit in real estate was getting a stockbroker and dealing with the process through phone calls and visits to them. The landscape has changed, and currently, technology is what oil was in the eighties and the nineties. When placing and buying your stocks, capitalize on these tech-based companies because if there is anything they have shown us, it is possible to create a multi-billion empire from a simple dorm room, and with no capital except intellectual property.

 

Always go for liquid stock

The stock market will always be unpredictable. As such, you want to stay with liquid and highly traded stock which is highly traded. This is the type of stock that will help you meet and exceed your trading goals within the shortest possible time. Avoid illiquid stocks because regardless of the amount of benefit they promise, they might not deliver. Finally, do not believe in everything that the stock says because everyone is at the stock exchange to make profits.

 

Those are the things you need to think about in connection with your stock and trading options. Most importantly, ditch the theory that you need to buy right at the bottom so you can sell right at the top. Regardless of the point where you enter a trade, as long as you study the trends well, you will not have a hard time making your profit. Start the process with baby steps, avoid diversifying or using leverage and instead, focus on two or three stocks and invest wisely.

Comments »

How to Turn Side Investing into a Full Time Job

Investing your personal capital in the stock market is a practical necessity for anyone to achieve their long-term financial goals. While most investors consider investing to be something that they do on the side and to achieve long-term goals, others may decide that they want it to be there full-time career. If you are considering going into trading stocks full-time, as opposed to working another full-time job, there are a variety of tips that you should follow to ensure that it is a smooth and successful transition.

 

Consider Your Options

If you enjoy trading stocks and have been good at it successfully, you could have a variety of career options at your disposal. One option would be to work for yourself and simply trade your own capital. While this can be a good option, it could be difficult to support yourself unless you have already built up a solid nest egg. Another option would be to work for an investment bank or financial planning company. In these organizations, you will be able to work a variety of different roles in which you will be able to invest other people’s capital.

 

Plan to Support Yourself

If you decide that you would like to invest your own capital, you will need to figure out how you will be able to support yourself for the time being. If you want to earn the most amount of money possible in the stock market, you will need to be able to keep as much money in the market as possible. This means that you will have to limit the amount of money you take out of your investment account each month. To make sure that you are able to minimize your personal distributions, you should have some source of income or other savings available to support your lifestyle. It would also be a good idea to have an agreed upon plan that will dictate when you can start to take money out of the market.

 

Develop a Strategy

If you have decided that you would like to work for yourself and invest your own capital, you will have the most amount of flexibility about how you invest. The most important thing that you will need to do when you are investing your own money for a job is to develop a strategy. You will want to have a strategy that will provide you with room for growth while also providing you with downside protection. This will help to ensure that you do not lose too much money if the market turns against you.

 

Invest Other People’s Money

If you are very successful at investing in the stock market, you may want to consider investing money for other people as well. If you have a proven track record, it likely will be easy for you to attract investors that will want to take advantage of your higher than market investment returns. In exchange for investing their money, you can accept an asset management fee or share in the profitability that they earn. This can be a great way to build more income in the interim.

 

However, before you start to invest money for other people, you need to make sure that you are properly licensed and approved to do so. All people that invest money for others are required to carry a variety of different types of licenses, have an ASANA reporting tool, and to register as an investment advisor. If you invest money for people more casually and without the proper certification, you are putting yourself at risk.

 

Before you choose to leave your job to invest in the market, it is important that you carefully consider all of the pros and cons. While you may be intrigued by the potential that is there if you dedicate more time to investing, it still may not make sense to quit your job entirely. Because of this, you should carefully consider all of your options.

Comments »

Investing In the Stock Market Requires In Depth Research

Investing money in the stock market comes with a significant amount allure and excitement for a lot of people. Furthermore, investing in some fashion is likely going to be a necessity in order for you to achieve your long-term financial goals. When you are looking to invest in the markets, you likely will find that you need to be able to pick the right stocks. To do this, you will need to do a lot of different types of research to ensure you are making a good investment. There are a variety of tips that you should follow that could help you better analyze and assess potential stock investments.

 

Understand Industry Trends

When you are trying to analyze an individual company, it is also very important to spend time with assessing the direction of the overall industry. You will want to find companies that are operating in industries that have room for growth and are trending in the right direction. You should also try to avoid companies that are not doing well and are in industries that appear to be trending backwards. Furthermore, it is important to analyze the industry to identify who the key leaders of the industry are. If your target company seems to be lagging in the industry, it may be a bad investment option.

 

Know the Numbers and Fundamentals

When people are looking for a stock to pick, many end up getting very excited about recent product releases, trends, and other types of noise that are very exciting. However, ultimately the company is only worth what it can produce and make. You should make sure that you are spending just as much time understanding the financials and fundamentals as you are focusing on the growth and development of the company. You should focus on a variety of key fundamentals including P/E ratio, debt levels, and income trends.

 

Listen to Calls

While it can be very helpful to read annual and quarterly reports to get a look at the financials, one of the best things that you could do would be to listen to the actual quarterly and annual calls with investors. When you listen to these calls, you will be able to get a lot of insight into the direction of the company from the CEO and other key leadership. This can give you a better glimpse into what the insiders are thinking. If the insiders seem to have a negative point of view, it could be a stock that you should either avoid entirely or bet against. After the calls are over, you will also be able to read reviews written by the leading stock analysts. This could give you even more insight into what occurred on the call, which would allow you to make more informed investment decisions about the stock and company.

 

Analyze Key Leadership

Ultimately, the success of a company and the underlying stock will only be as good as the people that lead the company. Because of this, you should do a little bit of work to understand the background and skill set of the CEO and other leading members of the company. You should look to get a better understanding of whether the key leadership have strong professional backgrounds, are skilled in negotiation training, and have had success in helping to lead other strong companies. This should help you to understand whether or not the key leaders are capable of leading and growing the company.

 

Finally, whenever you are looking to invest in the market, you need to carefully consider your risk tolerance. While investing is important, it also comes with a lot of risk. Because of this, you should not invest more than you can afford to lose. You should also make sure that you are diversified across a variety of different companies and industries. This can help to minimize your losses if the market or stocks turn against.

Comments »

Diet Tips To Get Ripped

Fitness enthusiasts, we know you like working out! When it comes to your fitness level though, are you satisfied with what you see in the mirror? Would you like to take your reflection to the next level? There are some tips and tricks that can bring you from humdrum to awesome when combined with your regular workout schedule:

 

Eliminate Junk Food And Processed Food….Most Of The Time

You’d be surprised at how quickly a handful of chips and a couple of cookies here and there can add up. Over time, these additional treats will sabotage your caloric cycle, leaving you frustrated and wondering what happened.

 

Allowing yourself the occasional treat twice weekly will prevent those “over the top” binge moments that take place when you completely deprive yourself of the naughty foods you are craving. Succumbing to temptation every now and again will allow you to stay on the straight and narrow much longer.

 

Lay Off The Alcohol And Other Empty Calorie Drinks

Alcoholic drinks and sodas are the biggest saboteurs to our fitness goals; they not only contain a load of empty calories, they produce a nasty insulin response when ingested, making your body hold on to fat for hours after consumption. Most of us aren’t diligent enough to include our liquid calories as part of our overall daily intake, so we find ourselves again wondering why we aren’t losing like we would like to. Replace sugary and empty calorie drinks with nutritious things like milk water, vegetable and fruit juices in moderation, and you will be providing your body with essential nutrients that will build the physique you’ve been dreaming about.

 

Change The Way You’re Strength Training

When lifting weights or doing resistance training, slow down! Muscles that are moving because of momentum aren’t gaining strength, they are just responding to inertia. Deliberately slowing down your reps, especially on the negative cycle, is key to gaining strength and improving muscle tone.

 

Go For The Burn

Most of us don’t exercise to complete fatigue, and we certainly don’t exercise to the point where we “feel the burn”. We’ve become complacent in our exercise routines, and it’s time to be conscious of what we are trying to build. A muscle can only respond and grow when in the repair cycle, so exercising to near fatigue or complete muscle fatigue will ensure that when the recovery process kicks in, your muscles will be repairing, restoring, and building the body you’ve been working hard for.

 

Take The Right Supplements

Knowing what to take for muscle recovery and proper nutrition will enhance your results. There have been numerous studies done in recent years on the benefits of creatine cycling, which is taking creatine as a supplement to boost a chemical process that is already happening in the body. The body creates creatine for the purposes of rebuilding muscle after hard workouts, and in order to keep the body primed to keep this cycle going, it is beneficial to supplement with additional creatine to keep the recovery process going. Adding a creatine cycle to a couple of post workout periods per week will help your body rebuild lean, mean muscle.

 

Add Cardio At The End Of Strength Training Workouts

All of the sugar in your bloodstream and system is eliminated in as little as 30 minutes of working out. Any activity that takes place after that is into fat burning mode. Even 15 minutes on a treadmill or an elliptical machine will make a serious dent in your fat zones.

 

Slow And Steady Wins The Race

If you are losing more than three pounds per week, you can be sure that you are losing water and muscle mass. Fat takes time to eliminate, so aim for a weight loss goal of ten pounds per month, and you’ll meet your goal in no time. Dust off those shorty shorts, hit the gym, and commit to improving your nutrition and you’ll be looking and feeling your best. Here’s to a healthier you!

 

Comments »

5 Digital Tools To Facilitate Employee Management

One key to running a successful venture is to automate as many business processes as possible using relevant software and tech tools. Human resource management systems enable businesses to focus on the needs of their clients, instead of their own. You could use tools like resourcing, operations, and reporting softwares, as well as a quality CRM to free up your team and focus on the customer. Here are five essential tools and technologies that help you do just that:

 

Project Management

Every project manager needs tools and technologies to manage client projects effectively. Some project management tools are simple to use and can significantly increase workplace productivity. These tools makes it easier to coordinate internal and external tasks among team members, like calling a list of clients and sending out mass emails. Project management tools, such as Workfront or Asana, give managers full transparency and enable them to work in clear visible workspaces away from email. While some project management systems are hard to understand, others come with vastly simpler interfaces. A digital project management system is an excellent tool for tracking client communication and collaborating with prospects. In fact, you can integrate many project management system with CRM platforms to create an even more seamless workspace.

 

Digital Reporting

Perhaps you have used tools such as Google Sheets for client reporting. If you find that the info you are tracking on Sheets isn’t giving you enough insight, then you could consider hooking it up to a BI system so that it can display and extract actionable insights about your clients. Digital client reporting systems are far much efficient than manual reporting. They are time saving and enable an agency to customize its analytics. Online client reporting tools provide a precise overview of market performance and make it easier to update analytics dashboards.

 

Human Resource Information System (HRIS)

Perhaps you have been wondering what does an HRIS do for business? It is a software package designed to help HR professionals manage their data. A human resource manager can utilize an HRIS to collect relevant data, such as birthdays, pay rates, tenure, hire dates, and more. The system will store it safely, and you can customize this software to the needs and requirements of your workers. It allows human resource professionals to store data in a centralized, accessible location. Moreover, HR professionals can use this system as a digital backup for paper files.

 

Cloud Storage

There is an array of options of storing critical files. However, the priorities for any company is security, ease of access, and syncing options. Google Drive is an example of an excellent cloud-based file storage option. It allows an enterprise to sync all of its files into one accessible area. Cloud-based storage is a perfect fit for online retailers as it facilitates secure data sharing and storage. Google Drive is also great because it automatically updates the previous version of a file whenever it is changed. As such, everyone can access the latest version, irrespective of the device they are using. Moreover, cloud storage allows staff members to share folders from any location. Of course, you want to add an extra layer of security to ensure client’s sensitive information doesn’t leak. Cloud storage vendors have a range of solutions for this, including physical security keys and 2-step verification.

 

Customer Relationship Management Software

CRM software is crucial to running a successful venture. You will need a system to manage customer data as your business continues to scale. A good CRM should also help you track client communication and billing contacts, manage invoices, and allow you to customize which employees are able to see customer info. Working with and without a CRM is a night and day difference, but make sure you find the right system for you company. No two companies are built the same, so make sure your software fits the needs of your company.

Comments »

What it Takes to Be a Great Leader in Your Current Position

Being a true leader is one of the most important components of any position. Leaders should guide companies to success, offer a clear goal and create a respectable business environment in which employees enjoy working. The success of a company or group often lies on the shoulders of a leader. Here are six skills that can make you a great leader in your current position.

 

Have a clear direction

No matter your current position, there are people looking to you for guidance. This is especially true with higher positions. Having a clear direction can give purpose and clarity to a whole team. This will help to create focused action and will develop worthwhile results when executed properly. Without a clear direction, those who work for you will not only be lost but also less motivated. A good leader has a clear direction not only for themselves but for the company itself. These expectations give employees something to strive for.

 

Make an effort to develop others

This point goes along with building relationships but is much more specific. A great great leader, in every position, works to help develop those around him/her. This works both ways in the hierarchy as every member of a business has the opportunity to improve and challenge both those who work above and below them. Developing others helps not only to garner respect but also to improve the overall functioning of a working group. When all members do better, the whole company flourishes.

 

Communicate, communicate, communicate

Communication is the key to success in all human relationships. This especially includes business relationships between members of a team, groups within a company and partner companies as well. Even the hardest working and goal-oriented companies can’t outwork bad communication. This is when things both large and small can fall through the cracks and cause immense problems. It is always frustrating to realize that a simple question or clarification could have prevented said issue. For this reason, it is critical as a leader to have clear communication in your position.

 

Be an active member of the team

At some time or another, all members will end up ‘taking one for the team‘ and doing work outside of their job description. This is an indispensable part of a functioning company and points to the innate human need for group support and help. There is a general assumption that those lower in the totem pole will be the ones more likely to be doing odd jobs outside of their usual sphere of responsibility. It is an important gesture as a leader to take some of these responsibilities upon yourself. When employees see a boss as an active part of the team, respect is often much higher.

 

Know the numbers

It is easy to talk about the company in generalizations and simple statements, but the real information is always in the numbers. As a leader, you need to have all of these analytics at your fingertips in order to stay on top of things. A great way to keep all important pieces of data accessible and organized is by using a CEO dashboard. With this information, leaders can make specific and detailed actions to help drive towards success.

 

Develop specific expertise

One of the most important parts of being a leader is responsibility. This is a difficult task as it requires an active acceptance. In reality, responsibility falls on the leader no matter what he or she does. It is the mark of a true leader when they actively take the reigns and work to improve things. Developing specific expertise within the field of your company is a great way to show responsibility. Besides, you never know when that particular piece of knowledge or ability will come in handy to save the day.

 

Leaders are an integral part of every successful company. They help to clarify goals, solve problems and drive towards improvement. These six skills are just a few of the many attributes that great leaders exhibit.

Comments »

How to Collect and Use Data From Your Business

When it comes to modern business in the digital age, information is more important than ever. Your ability to collect information on your market and customers will determine how successful you are able to be now and into the future. So don’t miss out on this major opportunity to gain further insights. Use the proven tools and strategies below to collect and use data for your business today:

 

Big Data Platforms

Certain platforms, like Apache Kafka, will allow you to run big data collection and analyze this information to your liking. After you have collected it, put your team to work to find ways to sift through the information, as each sector will have valuable uses in your business going forward.

 

Marketing Surveys

Marketing is the lifeblood of any business. However, if you don’t collect data from your marketing, then you are basically shooting in the dark. This can lead to you wasting a lot of money that isn’t necessary. Using marketing, you can conduct surveys on your audience. Ask them what they like about your product or service as well as what they would like to see improved or changed. This is valuable, as the more you can cater to your audience’s preferences, the more profit you can generate.

 

Ad Tracking

Not all ads are created equal. If you want to avoid wasting advertising dollars, it is crucial that you treat ad as a salesperson online. They should justify their cost based on bringing back conversions or sales. Use tracking software to ensure that you are tracking the conversion data from each ad. Play around with headlines, images, and other aspects of your ads to ensure that only the most effective methods are being used at any given time.

 

Email Marketing

Email marketing is still one of the most powerful ways to grow your business. However, different emails will convert better than others. Run data analysis on open rates, conversion rates, and response rates to repeatedly refine your email marketing strategy.

 

Social Engagement

How much engagement are you getting on Facebook? How about Instagram, Twitter, or Google? You need to know what percentage of your audience is becoming engaged with your social campaigns, otherwise you could be wasting time on those platforms. There are a number of tools that allow you to track these kinds of results.

 

Web Page Analytics

Your website is your calling card in today’s world. The amount of traffic you get is one data vector to log. Another one is the source of the traffic. Thirdly, you have the actual conversion rate of different traffic sources. These data points will help you determine which referral sources to target.

 

Another key piece of information to collect is your engagement on the site. Using Google Analytics, you can track how long people are spending on your site. If they are hitting your site but then leaving right away, then you know you have a problem with keeping them interested. This means you might want to change up your content or focus on a design change to keep them interested in your offers.

 

If you want to stand out from your competition in the marketplace, then you need to find a way to collect and use more data than them. This is easier said than done. However, if you approach it from the right frameworks, you can achieve a well of great information that allows you to draw from it anytime you want. Then, you can put it to use in a variety of applications that let you serve your customers at a higher level and maintain a greater profit.

Comments »

How Cloud computing is Affecting Our Everyday Lives

When it comes to new disruptive technologies that are taking the world by storm, one phrase has been the subject of more controversy than any other: cloud computing. Cloud technology has driven endless debates, led to many arguments in IT departments and left many in the tech industry deeply bewildered. However, there is growing interests by both small enterprises and big corporation on this technology. More and more companies are no moving their elements into the cloud. In layman’s terms, the cloud is a network of thousands of virtual computer serves that are located in many geographical locations and can store information and can be accessed remotely.

 

We have also bought the idea to store our personal information using cloud computing as a means of digital loss prevention. Such avenues that are supported by the cloud include Facebook, iCloud and Dropbox. Cloud computing has enabled businesses to do away with the traditional means of data storage such as flash drives, hard disks and floppy drives that are prone to damage and expensive to maintain. Business owners can access company information remotely without having to travel to the company premises physically. All you need to access such data is a mobile device and internet access. In this article, we are going to highlight how cloud computing has affected our lives today.

 

Health

There are numerous reasons why the use of cloud computing is gaining pace in the healthcare industry. Some of these examples include the management of non-siloed patient information and how to share it with the different stakeholders. These include the patient’s, medical practitioners, and the hospital management as well. Patients can quickly go through their diagnosis, prescription and treatment data and follow up with check-ups. This is critical in the reduction of operational costs such as the storage of data using the conventional means. Both patients and doctors can access such information using pervasive devices such as smartphones and tablets from any geographical location with internet access. Cloud technology has enabled healthcare institutions to create a conducive environment that complies with the regulations that have been set by the Accountability Act and the Health insurance Portability Act.

 

Smart Homes

The tech giant Google acquired a home automation company known as Nest last year. The company specializes in the manufacturing of Wi-Fi-enabled and self-learning smoke detectors and thermostats. Several months later, Google Nest Labs announced that it was going to acquire Dropcam. Dropcam is a startup that specializes in home-monitoring security cameras that uses cloud computing technology to store its footage. Homeowners with this application can check on the security of their homes from anywhere in the globe at any time of the day or night. In the near future, we are going to have houses and smart homes where everything is connected using cloud technology. Automatic lights and thermostats lead to increased energy efficiency wrapped up with some element of convenience. With such technologies, we are going to have home security systems that arm themselves once the owner has left. Consequently, the appliances in your homes will send updates and send an alert whenever there is any need for maintenance.

 

Education

Institutions of higher learning have been so fast in the realization of the benefits of cloud computing. As a result, they have engaged in the adoption of this technology for various reasons. With the cloud, students can access information and reading material from any geographical location on the planet at any time. The students will also have the ability to enroll in online degree programs and engage in group discussions virtually. Universities and colleges have also realized the importance of combining business processes to streamline the subscription of online courses, assignments tracking and class enrollments. This is critical in the reduction of educations expenses. These institutions can store vast quantities of data and information that is securely generated on a daily basis without the need to have a sophisticated data storage infrastructure.

Comments »

Tips For Creating A Better Workplace For Your Employees

We all know that happy employees are productive employees, but it may not be as well known that little changes to the work environment can go a long way toward boosting morale. Before you fret over making big changes to your department’s infrastructure, try changing the environment first. You may see a marked improvement in efficiency and productivity.

 

Stop and Listen

Is the workplace a noisy area? If so, that may be a part of the problem. While some noises are unavoidable, such as the clickety-clack of keyboards or the soft drone of the copier, there are ways to limit how far those sounds travel. Creating barriers with privacy dividers can make individual workspaces quieter. You might also consider moving the noisier office machines to another part of the office, where they will be less of a nuisance.

 

Bring in Specialized Professionals

The workplace can be very frustrating, when employees are expected to take on roles for which they really aren’t best suited. This doesn’t mean hiring new employees outright. You can minimize expenses, for instance, by contacting a reliable IT staffing agency to fulfill your tech support needs. Additionally, keep in mind that mental health affects job performance, so you might consider hiring a safety specialist, offering low-cost wellness programs, or offering courses on coping with mental disabilities. By instituting these changes, you can show your employees that you care about their mental wellbeing.

 

Maximize Natural Lighting

Sure, your office is probably well-lit. However, if the light primarily comes from artificial sources, it could actually be inhibiting productivity. Northwestern University conducted a study on the benefits of natural light in the work environment. They found that employees who worked with windows nearby had access to 173% more sunlight. As a result, those workers were able to get an extra 46 minutes of sleep each night, helping them to feel more rested and more energetic in the morning.

 

Help Employees to Feel Included

By maintaining an open door policy and encouraging staff members to contact you with concerns or input, they will feel much more involved in the organization. This can help them feel valued in their position, which will boost morale. To facilitate this atmosphere, it’s a good idea to keep the door to your office open as a symbol of the policy. Employees will feel more welcome to share their thoughts with you, if they can see that your door is open to them.

 

Provide Recreational Areas

Sometimes, your employees will need to blow off a little steam. By providing an area for them to do that, they can expend that pent up energy and come back to work feeling energized and productive. Some physical activity can also help chase away the mid-afternoon doldrums and help employees recover from that sluggish feeling. This can be especially helpful for employees who are seated at a desk all day. Something as simple as a ping pong table or dart board might do the trick.

 

Offer Free Lunches

Once a week, try to treat your employees to lunch. It doesn’t have to be an expensive catered event. Even sub sandwiches or pizza for the whole staff can go a long way toward showing them that you value their work. If you can arrange for everyone to eat together, this will maximize the positive feelings. It will give everyone a chance to talk and bond, creating an overall better workplace environment. This can also be a good opportunity for you to show company news, acknowledge outstanding employees, or get to know your staff a little better.

By making a few minor changes, you can create a more positive working experience for your employees. As they begin to feel more valued and freer to share their thoughts, they will be more eager to perform well. Creating a positive environment can help you to maximize performance, which will be good for the overall growth of the business.

Comments »

Why and When Your Should Bail in an Investment in the Stock Market

If you are looking to achieve financial freedom at some point, you will likely need to invest a lot of your personal capital into the stock market. When you are looking to invest, you will likely go into each investment with the intent of doing well and holding the stock for a long time. However, with each investment there does come some risk and there is an opportunity that things may not go your way. If this is the case of one of your investments, it is important to know when you should exit the investment and take your losses. There are several tips that you can follow that can make this decision process easier for you.

Stress

If you are experiencing a lot of personal stress due to money that is in one of your stocks, you should look to sell that stock immediately. While there is risk that comes with investing in the stock market, you need to remember that it is a long-term investment option. If you are losing sleep over one stock, it would be a good idea to sell that stock and invest it into something that more matches up with your risk tolerance.

Poor Analysis

Another situation in which you should sell a stock if it is at a loss is if there are bad stock analysis reviews completed by professionals. All publicly traded companies will be analyzed by a variety of different professional analysts who will give a rating for the stock. If you have a stock that is already losing money and there are some negative reviews coming out from analysts, it could be an indication that a bigger drop is coming. This could make it a great time to sell.

Change in Company Reputation

If there is suddenly a negative trend in the reputation for a company, it is a great time to sell a stock. Many times, the reason why a company and stock will do well is because the company has a great reputation for quality. However, this can quickly change if the company suddenly starts producing less quality products. For example, if a company produces the best SUV 2017 model year, they could see an increase in stock value. However, if the 2018 model suddenly gets negative reports, it could be the start of a stock slide that you should try to get ahead of.

Tax Advantages

If there is one advantage of selling a stock at a loss is that it does give you some tax advantages. If you sell a stock at a loss, you will be able to take that loss and offset it against other capital gains that you have had in that given year. This means you could reduce your tax liability if you have made money that year in the stock market. However, you need to be strategic with when you sell a stock for this purpose. Depending on how your trades have gone over the past year, it might make sense to sell before the end of the calendar year or wait until the following.

Something Better

Finally, if you noticed that stocks in your portfolio are not doing well, you should also consider whether there is a better place to put your money. There are thousands of companies that you could consider investing in. If it seems that there are better investment opportunities out there right now, it might make sense to cut your losses and put your money into something better.

 

While it is important to know when you should sell a stock because it is not doing well, you should also take other steps to determine when you should reallocate your portfolio. Even if things are going very well, your personal situation can change at any time. Because of this, you should reconsider your investments on a regular basis to make sure your current investments are right for you.

Comments »