When To SELL Your Stock Exactly

any yesterday's video we answered one of

life's great questions when to buy a

stock exactly well that's great now you

know when to buy a stock the things you

want to look at for buying a stock but

now the question is when should you go

ahead and sell that stock one of life's

other great questions guys it's one

thing to know when to buy it but then

you know a lot of people get caught into

the game of when do I sell it and they

they sell way too early or they hold on

to a stock way too long and end up

taking a big losses a lot of different

things guys now once again with the

stock market you shouldn't always expect

to make money a hundred percent of the

time especially if you're looking at

over a long term perspective over a

decade two decades three decades it's a

lifelong game okay you shouldn't always

expect to make money in every single

stock you buy however the goal is to

make money a lot more times than you

lose money okay that's the name of the

game and the trick is like when's the

perfect time to sell so let's kind of

get into this as as with buying a stock

selling stock has so much debate around

it when's the right time to sell because

you know you've made money on or you've

lost money on this position or maybe you

haven't done anything with that position

maybe it's just flatlined like what

should you do so a lot of people you

know they think ok you you buy in here

you know your stocks is kind of moving

up and then boom you kind of get a

little pop you get a little pop right

there you make some money and some

people say this is a time to sell the

sell it right that in there you made

your money don't be greedy don't be

greedy to you you made your pop there

you got a you know your 10% gain or

whatever go ahead and sell out of that

position now move on to the next one

some people will say that ok let me tell

you about a stock I bought this stock

was named Facebook so the stock name

Facebook right they go public and it's a

rough public offering ok and you know

six months later the stock is like

chopped in half from where they went

public at I looked into the company I

really liked the company I like I

understand like they got a big

opportunity in front of themselves and I

didn't even understand Facebook nearly

as well back then as I do today ok and

so I look into this Facebook and I'm

like I'm gonna buy some shares in this

Facebook stock so I buy what was at that

time a lot of shares worth you know for

my net worth at that particular time and

I buy into Facebook stock at $18.80

$18.80 all of a sudden very quick

the stock rises pops it goes to like

$19.90 or something like that $19.80 in

a very quick amount of time I made a

very nice profit on Facebook and I was

like you know what I'm just gonna go

ahead I'm gonna take my profit right now

and run out of this one well that was

about six years ago five or six years

ago and now Facebook stock is somewhere

around a hundred and eighty dollars I

believe maybe 170 hundred eighty dollars

you guys can look it up ticker symbol FB

somewhere around there okay so from the

perspective of should I have gone ahead

and in sold out of that position avid

obviously no I should not I should have

held those shares for the long term but

I made it a little bit of quick money

and I was like whoa I made a quick money

on this one let me just sell out and

take my gains and run and I was

listening to kind of all the negativity

and which that Facebook had a ton of

negativity around that time not a lot of

people understood the stock I take my

little bit of money and run and now it's

$180 stock do you think that was a very

good decision you know that was a

horrible horrible decision to sell

Facebook stock in nineteen something

dollars a share it's like a joke price

all right so that doesn't really work

okay that really doesn't work now some

people will say well don't know so you

know early on wait till you get a real

big gain up okay wait till you make 50

percent a hundred percent on your

position all right 50 a hundred percent

in your position well once again we've

been look at me with the Facebook

situation right I could have said okay

you know what if I'll sign you know I

buy an $18 they goes to 36 I make a

double up and you know in it I think a

year or two later it was like a double

up alright and I sell out at $36 well

guess what over the next 3-4 years it

went from 36 dollars still $180 so still

they would have been a horrible decision

so when you're you're buying to a stock

you really like for the long term to say

I'm going to take a quick profit or

maybe even a big profit it doesn't make

sense to look at it from that

perspective okay of just like oh it went

up and and so let me go ahead and sell

out and take my gains now that's not the

way this game works now some people will

say you know if you got in a stock in

this stock he's just not doing crap for

you it's just moving up down a little

bit and you've been in the stock for a

while move

on to the next stock some people say

that you know it's just kind of like a

flatline stock move on to the next one

all right okay

I have a stock that I bought this was

similar to around the time I had bought

Facebook okay this company was named

Pandora ticker symbol P Pandora internet

radio this was very different you know

back then you know now there's been so

much innovation in the music game

there's been a lot of things that have

changed Apple musics come along Spotify

has gotten way bigger but back then you

know Pandora was this internet radio

company he was losing money at the time

it was actually I think the first

company ever invested in that was

actually losing money if I recall and

they couldn't make money but at the same

time their opportunity was it was huge

in front of them and they had massive

growth ahead of them okay and they were

growing revenues like crazy and whatnot

so I bought you two this Pandora company

somewhere around I think it was around 8


somewhere around there okay I hold this

stock for nearly a year

it goes from seven dollars to $9 eight

dollars and a year later I'm still the

the shares are somewhere around eight

bucks still okay and I didn't have made

any money really in the stock I haven't

really lost any money in the stock and I

held it for nearly a year which at that

time was still kind of within my first

few years of investing so I was like all

the time in the world right all the time

in the world so I got frustrated with

this stock and I sell out of my position

completely at a rate around $8 I might

have lost a little money made a little

money it wasn't much at all okay it was

basically around breakeven I just got

frustrated with the stock and I was like

you know what screw this I'm selling all

this position right I saw this position

well 18 months later 18 months later a

year and a half later Pandora shares are

at $43 a share eighteen months after I

sell out of my position right around $8

a share guys so needless to say that was

a really really bad decision just

because a stock hasn't done much over

the past year or maybe we say even two

years or three years doesn't mean it's

not gonna do a ton in the future for you

once again it depends on the business it

depends on where the narrative with the

company's going all those type of things

okay so this was a stupid idea guys I

could have made a ridiculous sum of

money okay this

was probably my third biggest position

at the time Pandora is probably my third

biggest position and I sell out

completely after holding it for a year a

year and a half later it's at $43 this

year okay so this whole game of oh it's

flatlining okay that doesn't make sense

necessarily so and at the same time you

know pandora could have gone down

absolutely but you know you got to judge

off business fundamentals not what that

stock is doing as far as what the stock

price is doing now lastly some people

will say you know what if you buy into a

stock you know you buy into a stock

right here and this stock shoots down

you need to sell out that position okay

you know put a 5% stop-loss on it

10% stop-loss like a lot of different

people have different opinions stop-loss

meaning if it goes down to that price is

just gonna automatically sell your

shares of course if it gaps down even

more you need to have a range in there

and things like that as more complicated

trading stuff but some people say you

know if it goes down gaps down five 10%

sell out of that position just get out

of it man Wall Street doesn't like it

right now get out of it oh my goodness

once again this is a really really bad

decision what would warren buffett tell

you in this situation what would warren

buffett tell you pretty much any great

value investor what they're gonna tell

you you buy a stock here okay you love

this stock and it goes down to here and

you still love the business fundamentals

of this company

you don't sell you buy more okay Warren

Buffett myself any great value investor

they're gonna say you really love

business fundamentals of this company if

I love a company like their business

fundamentals I think they're gonna do

phenomenal over the next three five 10

years I really believe in this company a

lot I look at the numbers look at the

business everything in general and I

look into this company I love it it goes

down 10% and I still love the business

fundamentals here does it make any sense

at all for me to sell these shares no it

makes sense to buy more it's like going

to the the the I don't know H&M and you

see a shirt there in the window and

you're like dang I really like that

shirt I think I think I want to buy that

shirt I don't have quite the money on me

today to buy but maybe I'll come back

next week next week you come back that

same church in the window but now it

says a buy one get one free it says buy

one get one free or buy

shirt at 10% off and it's like you going

in the window and say you know what no

that's 10% off Noah's

buy-one-get-one-free you know what I

don't want it now that's shirt it's not

much you know what I don't want it

what they're like what like that makes

no sense whatsoever guys that makes no

sense whatsoever

now if business changed and things like

that you know it's worth selling out but

if you still like the business

fundamentals just because the stock goes

down does not mean you should sell out

of that sheriff I cannot tell you how

many people sell out of shares when they

go down okay imagine there were people

selling Facebook shares when it was that

$20 a share I mean I went down to

eighteen seventeen dollars right there

were people selling at $20 a share of

Facebook and we're probably like man I

really like this company for the long

term but it just went down a bunch and I

lost some money on it so let me just

sell now and then they saw the position

and now Facebook's you like you know

what I mean just think about that guys

from that perspective in videos of the

world all these these Hut socks Amazon

you know many times Amazon's gone down a

lot it's gone down a lot of many times

Tesla there's so many shares Netflix I

still remember it was like yesterday

Netflix shares were like 30 bucks a

share right and now Netflix is 300 I

think or somewhere around there I want

to say Netflix like like guys you've got

to judge it off where the business is

going okay so now let's get into why I

sell out of a position there are three

reasons why I decide to sell it out of a

stock all right the first one the first

reason I would decide to ever sell a

stock is what I call bad bad okay if

things have gone really bad for that

company business fundamentals not stock

price not stock price performance I'm

talking about underlying business

fundamentals income statements balance

sheets things like that if things have

gotten really bad for the company I may

sell out of position especially if

there's something there's like usually

like a few things I would like my

bullish thesis is on stocks okay any

stock I buy into you know I always have

bullish thesis is like those are like

one or two and maybe three things I

really love about that company and why I

think that stocks can go up a lot over

time why they're gonna expand their

revenues and profits and things like

that so I buy into this stock in all of

sudden one of the two or three bullish

thesis is I have on it goes really south

like the like what are the business

signs about and like I think they're

gonna expand and make

into a huge thing if Ulsan they exit

that business line what do I have left

at that point what do I have left that's

probably a situation where I want to

sell sell okay things have gotten bad

you know maybe the company does some

crazy with the balance sheet where the

balance sheet was a phenomenal balance

sheet but over the course of two or

three years

maybe I'll sudden the company starts

losing lots of money maybe they start

paying out all their their money and

dividends and whatnot and also this

balance sheet goes from a balance sheet

that's rich in cash and investments and

also they got a ton of debts on it

there's a situation that things have

gone bad bad like I like it's time for

me to get out of that company

if the fundamentals underlying in the

business erode if the bullish thesis I

had going into that stock erodes and

goes away then what am I in those shares

anymore it's time for me to just get out

whether I have made money in that stock

whether I've lost money whether the

stock hasn't done anything if the

business fundamentals erode and get

worse for the company and I and it's not

like oh the company missed numbers by a

light three cents or the company missed

number by you know five percent of the

revenue like I'm talking about actual

business fundamentals like the big

things that are overarching that are

really gonna dictate that stock price

over the next five 10 years if those

things go away it's time for me to get

out that position I don't care if I made

money lost money it doesn't matter it's

just time for me to get out of it the

number two reason why sell out of a

stock is honestly if it's just gone up

too much okay now what do I mean by gone

up too much what do I mean by this

because once again this almost goes back

to the whole thing we were talking about

earlier well the stock pops ten percent

or 50 percent over 100 percent do you go

out and sell out what do I mean by the

stock gone up too much is the way I like

to think about it is okay if I didn't

have a penny invested in this company

right now when I even contemplate buying

shares in the stock as of right now if

the answer's no it's time for me to sell

all those positions okay think about it

this way like like why would you expect

someone else to pay a super high price

for those shares if you were like I

would never pay a print this price you

know for these current shares like that

makes no sense at all guys that's when

you get into greed territory when you're

thinking in your head like like

someone's crazy for buying these shares

right now I own these shares over here

but someone's stoop

if they bought these shares on me like

they got to be crazy I would never buy

these shares at this price now if you're

thinking like that like like like you

need to have stock ASAP okay don't ever

expect someone to pay a crazy price for

your shares when you there's no way you

would pay that type of price alright

no there's certain times where you just

invest in a certain amount of money in

the stock in in regardless whether it

goes down more or whatnot like you're

you're set like you have your position

built in that stock that's not what I'm

talking about I'm talking about if you

didn't even own a shares in that stock

and you looked in that stock you're like

dude I would not I would never buy

shares nice talk your grandma came

viewings like should I buy some shares

in the stock and you're like grandma no

like the stock is way overpriced right

now I still own the shares but don't buy

these if it's like that guys oh my gosh

like you need to get out of that stock

that's just crazy okay that's just crazy

at that point time and the third reason

I will sell out of a position is what I

like to call Michael Myers all right

the Michael Myers a effect I guess you

could say anybody that's ever seen the

Halloween movies knows Michael Myers and

basically he's just like you know super

villain whatever you want to call him

and you know he kills people and whatnot

serial killer and he comes up behind

people and I'm talking about this in the

respect that companies have Michael

Myers coming behind them all the time

okay the question is do they have a

serious competitor right everybody in

retail over the past five ten years has

had this little company this is Michael

Myers company they might put a little

soft in that but they've had Michael

Myers coming behind them and what does

Amazon is doing is killing a retailer

after retail or after retailer and it's

causing death to them all okay and you

know some of them are just getting

sliced up a little bit at a time you

know just a needle here needle there the

other ones are getting machetes into

them okay that's what it is right now so

if you want a company and Michael Myers

is coming behind you man you need a

freaking get out of that stock okay I

don't care what PE that company's at I

don't care you know what that company

has going forward things like that if

you feel there's someone something

serious coming behind your company

that's going to be a major major

competitive threat in regardless you

need to get out of that stock okay it's

not a stock you want to be in if if you

no in the back of your head like you you

feel like your company's not gonna win

this war and you got to be realistic

with yourself okay

you can't like have too much pride for

that stock member you're dating stocks

are not marry in stocks in this game

you're dating them okay is you know you

can move on to the next one when you

think about it in that respect guys if

there's a major competitive threat you

just have to be real with yourself okay

and say man I don't think I want to own

these shares anymore I like like think

about it you think about if you own

Sears stock okay you only sear stock for

the last I don't know 15 years or

whatever like you could have seen all

this stuff coming unless you were

completely delusional like I don't know

who's been owning Shir Sears shares like

over the Pentagon have they gone

bankrupt yet I'm not sure but whose own

Sears shares like over the past 10-15

years like it's gotta be idiotic you

look at it you know they had Walmart

coming after them and Kmart and their

sales were declining and their you know

things were getting worse for that

company and I started taking losses and

they bought Kmart which was a horrible

decision that if I recall they bought

Kmart my goodness what a disaster that

was then all said Amazon starts coming

in a major way into retail over

especially over the past five years and

they start stealing always you know

sales from not only Sears but all these

other competitors like like Michael

Myers was obviously coming but but

people were delusional and like all or

no and it's not gonna happen to my

company you've got to be realistic with

yourself guys you don't want to be in

stocks that is obvious there's some

competitor coming in and they're gonna

start taking major market share those

are the type of companies you don't want

to be in man because that's that's just

a bad situation man your company's more

than likely going to get rolled over and

now once again this doesn't just mean

that any competitive threat that comes

into the space it's got to knock your

company off no you've got to be

realistic with yourself you know what is

that company's brand strength so do they

have brand strength and pricing do that

brand strength and consumers just love

that brand will consumers buy that brand

even in a recession you've got to think

about all these type of things guys

but if Michael Myers coming behind your

stock man you just need to freak and get

out of that thing okay I don't care what

pees out I don't care if it's out five

PE or eight P they got some major dog

coming in there and they're gonna take

Cher and they're gonna knock your

company off like get out of it man it's

just worth it to go out have a time guys

so those are three reasons why I choose

to sell a stock I hope you guys really

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