- (1:10) – When Is The Right Time To Sell A Stock?
- (9:30) – Finding A System That Works Best For You
- (15:10) – How Much Of Your Position Should You Sell?
- (22:20) – How To Evaluate Your Current FANG Positions
- (30:15) – Event Based Stock Rally’s: Do You Take The Profit and Run?
- (40:00) – Episode Roundup: VCEL, TSLA, FB, CHWY, BABA, TTD, ZM, SQ, BIDU, ROKU
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Welcome to Episode #254 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Senior Strategist, Kevin Cook, to talk about when to sell a hot stock.
2020 was quite the year on Wall Street with many hot stocks seeing big gains.
This has left many investors with double, triple or even bigger gains in just a short period of time.
And now they are asking: should I sell?
Have a Plan
The key to selling a stock is to have a plan. Hopefully you had one to buy the stock as well. Now is the time to ask a few questions.
1. What is your objective? Is this a short-term trade or not? Is it a world-changing company or a momentum trade?
2. What kind of money is it? Is it 2-month, 2-year or 20-year money?
3. Why did you buy the company in the first place? Is it still following the same path? Does it have the same management?
5 Hot Stocks: Should You Sell?
1.
Vericel
VCEL
creates advanced cell therapy for sports medicine and severe burns. Shares doubled in the last six months of 2020. It’s hitting the price targets set by analysts. It now trades with a forward P/E of 91. Should you sell?
2.
Tesla
TSLA
was the hottest stock of 2020. But some investors are now sitting on huge gains, and this makes them nervous. Should you sell part of your gains? All of it? None of it?
3.
Chewy, Inc.
CHWY
, the online pet retailer, was a big beneficiary of the pandemic. Shares soared in 2020, but have retreated 15% off the recent high. With the vaccine rolling out, should investors cash in on these pandemic winners?
4.
Alibaba
BABA
has been volatile on the news that the Chinese government is bringing regulatory pressure on the company. Shares are down 10% over the last month but were up 72% over the last 2-years. Should investors be selling?
5.
Facebook
FB
is up 608% since its 2012 IPO. A lot of long-term investors are looking at a big winner. What should investors be doing with their big FAANG winners? Sell or hold?
What else do you need to know about when to sell a stock?
Listen to this week’s important podcast to find out.
[In full disclosure, Tracey owns shares of FB in her personal portfolio.]
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