I had lunch with my friend this afternoon and we talked about investment. I told her I am looking for a condo to invest but she asked me to hold on first as she heard from her friends that there will be a recession in year 2008. The perception is that, during recession, property will be slightly cheaper. Then we talked about investment in stock market, my friend said that her husband told her about his weakness in investment – do not know when to sell.
I shared my point of view with her. I told her nobody is able to predict the BEST TIME to sell, or predict the HIGEST price for certain investment product. We should set a target like x% of return/profit. For example your target is 30% return, for Unit Trust investment of MYR 1000, the BEST TIME for you to sell is when you are able to get back MYR 1300 from the Unit Trust Management Company. (1300–1000) / 1000 = 300 / 1000 = 30%
Another way is, mentioned by lots of famous and successful investors – when everybody is greedy, be fearful; when everybody is fearful, be greedy. In other words, buy when everyone else is selling, sell when everyone else is buying.
When is the best time to buy/sell? YOU DECIDE!
1 comments:
I totally agree with you on this one, Investment Guru!
Here’s a piece of my mind: I think that once you invest on something, you should have a projection on at how much you would be willing to sell the investment you bought. Once it reached your target: (1) if the price is going up, you could partially sell your investment (let say 50% of your share) so as for you to realize the gain/profit, then you revised your projection/target again; (2) if the price is going down you can either sell all your investment (pessimistic) before prices would further drop or if you are still optimistic about the market then you hold your investment until it reached your new projected price (remember: you won’t actually realize loss unless you actually sell it).
And remember once you have made your decision to sell and actually did sell your investment, don’t look back, especially if prices went up after you sell your shares cause that’s part of the game, you take the RISK!
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