...Best way to answer this question is to use your own instincts as a barometer, but thoroughly exhaust the possibilities and ramifications from each of the three choices. Luckily, there are only three choices, therefore you have at least a 33.3% chance of being right if you do nothing.
The criteria for this decision of course relies on cash available, cash needs, company news, presence of mind, and a promise to yourself not to second guess your decision and ruin your day with "shoulda, coulda, or woulda."
Listen to others before you act, and after you hear them, simply file it under 'were they right' or 'were they wrong' for future reference, but be weary of so-called expert opinions because like assholes, everyone has one.
Now back to the 3 choices:
Buy...is there a stock you have had your eye on, and did some research on it? In the market, a drop in price for a stock you like is attractive, and might be a good buy on a dip, so buy it. If your portfolio has a stock you want to add shares to the position and you were set to buy it at a higher price, buy it on the dip. I don't recommend cost averaging down, however, this could be an opportunity to take advantage of a technical drop in the market, not a fundamental drop in the stock. Again, DO YOUR RESEARCH! Check individual news, look for unusual activity, such as, out of the ordinary volume, large block selling, news reports on company or sector, and any new professional opinions. Avoid the buy if you determine something strange is happening.
Sell...once you sell a position in your portfolio two things happen: you may lock in a loss, and you do not own the stock anymore. Panic selling is your emotions taking control over your original instincts - causing you to critically analyze your original belief, research and commitment to buy in the first place. If going to cash is based on the market selling off and the world coming to an end, perhaps you should close your computer, turn off your tv and cell phone, and go to a double feature at the Dine-In AMC theatre immediately. Selling is usually connected to two emotions, fear and regret. I am no psychologist, but I am experienced and have been through many other sell-offs, so just take a deep breath and be smart. Selling with the herd is how you get trampled. If you sell, sell for good reason, LIKE TAKING A PROFIT, and think it through carefully. Of course you have a chance of being completely right for a day especially if the market had a fickle bleep south.
Hold... This in my opinion is the hardest choice of the three. Do nothing, yikes - sitting with your finger on the trigger with influences coming at you by email, text, telephone, and personal contact - choosing to hold and do nothing is brave, and demonstrates huge confidence in yourself and your holdings. You haven't succumbed to making a choice based on desperation. However, this comes with a caveat...have you held because you're paralyzed like a deer in the headlights? Or, is your decision to hold a proactive decision, acting instead of reacting. Holding leaves you in a position to hold and watch a further drop and therefore it's too low to sell or by holding you are prepared to participate in a return to break even and perhaps gains by the end of the year.
These are some quick assessments to think about as volatility and market fears from Ebola, interest rates and earnings are today's news.
What's playing in a theatre near you?
© 2017 Stock News Now
Supported by Superior Web Solutions