Thursday, March 31, 2011

Stock Market - What to Sell

One year back, you bought two shares. First one for Rs.6,000 and second one for Rs.4,000. Today, both are at Rs.5,000. You need Rs.5,000 and you want to sell shares. For the sake of simplicity, assume that, you cannot sell the shares partially. If you want to sell the shares of one company, you have to sell it completely. Which company shares would you chose?

In my experience, those who do not have experience with stock market would chose to sell the second company shares.

But, my guess is, we should completely ignore the history of the share, and should sell the shares of the company for which the prices will go further down, or the company which has less growth going forward. My opinion is same for real estate as well.

No comments:

Post a Comment