Making the tough decision to sell

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Question asked 31/07/2021

Making the tough decision to sell

Hi James. Like many, I find the decision to sell can be agonising, especially when one is going to make a loss. My own personnel experience suggests that of stocks that lose more than 10% , 80% of those will stay depressed for many months (i.e. A2M) and 20% will bounce back. I was wondering if your research team has looked at these numbers from your own experience. Nick

Answer

Hi Nick,

We do indeed crunch such statistics on a regular basis and there is substance in your interpretation. Overall however we like to exit a position when the “reason for the trade” is no longer in play and / or the risk / reward looks unattractive.

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A2 Milk (A2M)

LAST UPDATED 31/07/2021 08:41

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