Sell Signals, When to Divest

  • Disaster: Sell when disaster strikes, such as management team going down in a crash, company product recalled, etc.
  • Timing: If a company’s strategy to increase revenues isn’t making headway in a reasonable amount of time, it may be time to sell.
  • Insider Sales: If you see sizable insider selling, it’s time to join them by exiting your position.
  • Valuation: If the valuation seems bat-guano crazy, consider selling if the valuation is based on guano.
  • Take Profits: If you make a nice profit, take the win and move on happily.
  • Spidey Senses: If something just doesn’t feel right, consider hitting the sell button.
  • Overall Economy: If market index freefalls, don’t panic sell. If it’s due to Zombie Apocalypse, sell.

Original full length post is available at The Momentum Letter – Determining When to Sell

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