Buy, Sell or Wait? 5 Situations Every New Trader Should Think Through
If you are new to the stock market, there is one question you will probably ask yourself many times: Should I buy, should I sell, or should I just wait? At first, this sounds like an easy question. If the price is going up, buy. If it is going down, sell. But once you actually start watching the market, you realise that it is not that simple. A stock can go up and then suddenly fall. A stock can fall for a few days and then recover. Sometimes, everyone around you is talking about one particular stock, and you start feeling that you are missing something by not buying it. This is where beginners can easily get confused. Instead of trying to guess what the market will do next, it is better to stop for a moment and think about the situation. Here are five situations that can help a new trader understand when buying, selling or simply waiting may need more thought. 1. A Stock Is Suddenly Going Up Imagine you open your trading app and see a stock that is up 8% or 10% in a short time. You ma...