A Hold is as Good as Buy
There is no such thing as “hold” decision. Assume you have additional money to buy the stock and you are holding some stock, if you don’t buy the stock again, -you should either sell or admit that your are confused.
Resolve the confusion, the hold condition often happens when you have owned a stock for years. You are basically happy with the stock and price of stocks are too high than your purchase price. Or the stock have no value at all, you have bought it at very high price and now you are busy and don’t want to spare time to take decision.
But what are the fundamental of stock today? What will make the price rise in the future? Why would you buy the stock today, assuming you didn’t own it? If you don’t know, you don’t own an investment. You just own a stock.
Every investments must be taken care at-least by a six months or a year. You should have reason (to hold the stock) why that particular stock will go up and why the company’s line of business will increase.
Many of people always holding for the shares for the long time arguing (1) Because the price they are looking is due to their own capability of holding for long-time, rather they will never let you know the loser they have and also the value of the loser is very low comparatively. (2) Where else they will invest the money, if they sell the stocks and they decide to remain invested all the time.
In fact, there can be one or more reasons to hold the stocks of the joint owned stocks or family owned stocks, if he takes decision about the stock.
1.Fear of going wrong.
2.The possibility of losing.
3.To avoid looking foolish.
4.Unwillingly to take risk.
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Also you like to read :
Always Mark to Market (M2M) Your Positions
Is the Reward enough to the Risk you are taking?
The Smarter takes longer to succeed
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