3 Indicators That Your Stock Trade Is Not Working

There is more to cheap stock trading than getting the cheap commissions and being frugal on paid services. When money is involved time also gets thrown into the equation of what’s cheap.

If there is a resource that allows us to eliminate a hours worth of work, then imagine what you can make up in that new hour. The same case goes for holding a stock.

I always preach that you should allow your stock room to breath. Rarely will anybody call the exact bottom or exact top. That being said, there are some warning signs that should tip you off it is time to sell.

1. Bad News

Regardless of how much research and risk management you use, the inevitable will always happen. Maybe some type of natural disaster , company being sued, or threat. Whatever it may be, certain news affects certain stocks. If pertinent bad news break, then its probably a good sign to sell.

2. Large Volume

If technical analysis is your thing, then you’re probably aware of the importance of volume compared to the move in stock price. If there is heavy volume on a swing downwards, then its probably a good sign to sell.

3. Doesn’t Follow Plan

You should always have a plan before entering a stock. Where to buy and take profits; however, sometimes these plans don’t play out like they were supposed to. For example, if you bought a stock that is supposed to rise as oil goes up and oil goes up but stock doesn’t, then you might want to consider selling.

While these are very simple methods and ideas, they can easily help you prevent losing more than anybody wants to.