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Co-Wise: How do you decide when to buy/sell?
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Beginner's Guide

When to buy stocks?
Fundamentals - Check the company's books. Is it increasing its profits, revenue, cash flow? If the fundamentals are solid, the company has good growth opportunities. Quarterly results will tell you more. Keep your focus on the long term and know that short-term headwinds are temporary for companies with strong fundamentals.

Technical indicators - The best time to enter may be yesterday. But if you're sitting on the fence, chart the stock. Is it trading above/below its moving average? Is it on a up/down trend channel? The trend is your friend. Nobody knows when will a stock bottom or peak, and its better to know that you're riding the uptrend and not the down wave.

Have an exit plan before you buy, and stick to it.

When to sell stocks?
Ask yourself why you bought the stock in the first place? If you realise the company is no longer what you assumed it to be e.g. a change in management focus, trying to enter an already saturated market, leaving its core functions, these may not be a good sign. Refer to your exit plan.

Lost - If you're trading, limit your losses. Unfortunately, these things happen. Maybe it was a wrong entry point, but always stick to your stop loss. Too many people have sat on their losses for too long. And they never recovered.

Don't get greedy - When your stock gains hits your TP, sell it. Don't get greedy. It is much easier to hit 3 TPs then hope for that 100% profit out of one stock. Smaller gains always lead to big overall profits.

Good luck good peeple.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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