Fully half of my small / medium cap stock holdlings are in the negative by more then 20%. Not a fun place to be. What to do now?
Good summation by John Whitefoot:
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On the flip side ... there’s no better time than the present to dive in.
Sure, penny stocks could get cheaper, but with so many trading below book value, now is a good time to get involved. After all, if you’re looking to capture gains over the long run, then buying penny stocks in a beaten-down sector makes sense.
...How do you know when its time to sell? The same business professor noted that there is no trick – but there is a framework of decision-making to follow.
First and foremost, it’s important to, “go back to the reasons you bought the stock in the first place.” Based on that, you can decide whether those objectives have been met. And whether you believe the stock is still undervalued.
After all, either you think the penny stock has room to grow or it doesn’t. Having already done your research, this ought to be, greed aside, an easy task.
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BK
