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Once you buy stock, when should you sell? Part 1 Flashcards | StudBud
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Once you buy stock, when should you sell? Part 1
Once you buy stock, when should you sell? Part 1
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1
If your stock drops more than 8%, it means your entry point, company, its industry, and the market are performing well.
False
True
2
It's generally a good idea to sell a stock when the price simply goes down.
True
False
3
During a healthy market up-trend, it's smart to take most profits at 20%.
True
False
4
The 8-week rule states that when stock reaches a 20% gain in less than 3 weeks, hold it for at least 8 weeks.
True
False
5
What is the 8-week hold rule?
Helps you identify stocks that jump over 20% very quickly.
Helps you identify stocks that decline 20% very quicky.
6
What is an entry point?
the price at which an investor buys or sells
a particular place where a person enters