Australian (ASX) Stock Market Forum

Rules for when to sell a stock

Your correct

Worse can and will happen.

You need to read the book "The Crisis of Over crowding"
Crowding.png

While Governments insist on spending money they don't have.
Financial Armageddon is always a step closer.
1929 will seem like a walk in the park.
 
The market is fundamentally different nowadays after the great invention - QE. It is structurally impossible for the market to crash nowadays. XVI up to 14 this week from 8 mid-March and SPI barely moved still sitting at 5800. The market simply can't fall.

Active management is dead. Central banks are gods. Worship them, have faith in them and keep buying.

In this structurally up market, sell is pointless. Like those who sold at the beginning of this week will have to rush back in when they see SPI open up 30/40 points tomorrow morning.

It is not just a secular bull market but a structurally up market.
 
I seriously question why I bother writing a page of info.
I hope you don't stop, Daffy.
You don't write for trolls, but for a large number of community members who read and understand what you have to offer. So, you may not always see them or hear from them, but if ever there is a "silent majority", it's those members and guests who benefit.
 
The market did open 30 to 40 points higher, didn't it? And it is pushing higher, isn't it? TICK index reaching over 100 to 150 showing people are rushing in to buy, isn't it?

It isn't only me saying. This is just how the market structure nowadays.
 
The market did open 30 to 40 points higher, didn't it? And it is pushing higher, isn't it? TICK index reaching over 100 to 150 showing people are rushing in to buy, isn't it?

It isn't only me saying. This is just how the market structure nowadays.
I agree that the post QE market is a very different paradigm to that of the pre QE.

There was a time when I might have agreed with the comment that the market, by its very structure, is heavily biased towards the upside, on account of the presence of that highly reliable support level, namely zero!

NIRP taking the stage, has given me cause to question the sanctity of that formerly infallible support level.
 
Hey guys, I am just curious to know your rules when to sell a stock?
As an investor, all I care is a strategy that earns me money. Frankly I'm not concerned what academically might happen. We all know that probably of accident while driving a car is greater than zero. You can worry all day and looking for opportunities to jump out of the car. The rest of the world will just keep moving on.

The market is extremely resilience. This kind of unnecessary worries is exactly how people got killed in this market.

I just can't see anything on the horizon that could derail the market. Just like Sydney property market, as crazy as it might look, the structure of the market means there's only one direction the market could go, and that is up.

Don't bother sell, but rather focus energy on how to increase your gearing. That's how to outperform the general market. The only rational thing to do in low rate environment is borrow to invest.

The question shouldn't be when to sell, but how to buy more.

Now!
 
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