Do you sell out of positions every time a stock becomes overvalued or do you just hold?
$UnitedHealth(UNH.US$ $Home Depot(HD.US$ $Microsoft(MSFT.US$ $ASML Holding(ASML.US$ $Alphabet-C(GOOG.US$ I have 5% positions in a lot of stocks I plan to hold for 10 to 20 years in names like UNH HD MSFT ASML GOOGL etc. Blue chips I call them.
I thought more or less we are taught to just hold and "ride the waves" up and down and add when things go lower (on sale maybe) and more or less never sell on good companies.
So I assume that the consensus is not to sell a position every time one of your stocks becomes "overvalued"?
I mean id probably have to sell all my stocks if that were the case lol!
I mean I already have 20% cash for when some positions sell down if fed taper causes 20% or more correction next year or whatever.
I thought that the consensus was more "time in the market instead of timing the market"?
For example I could say I'm selling all my long shares of MSFT cause I think they're overvalued and think they'll fall next year and then I sell and they continue up another 10%.
Isn't it better to instead to just hold my MSFT (for example) rather than sell and hope it goes cheaper to buy in lower?
Then if the market does tumble 40% next year buy more MSFT at a possible 40% discount?
Should I be jumping in and out of my positions every time a stock becomes "overvalued" or do you just have to use your own judgement?
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Enlly : If I like the company and it’s long term prospects I usually just ignore variations in the price of the stock.
For example, in the last 3 months I watched Adobe go from $570 up to $670 and back down to $570. If could foresee the future I would have sold and then rebought. I can't foresee the future, so I just leave it alone.
I would only sell if I saw some sort of change in fundamentals such as an inability to develop new products, or if it is losing against competitors.
Safari Pokemon Enlly: Well said