Sell When They Want to Buy; Buy When They Want to Sell

Investors know that it’s always easier to sell a stock when it is going up--the more people who want to buy your stock, the better the price. I also strongly believe that it never pays to be greedy when it comes to the stock market. There is an old Wall Street saying, “Bulls make money; bears make money but pigs get slaughtered.”

Investors who consistently pursue a bullish long-term strategy can make money, as can investors who consistently apply a bearish strategy. The investors who do poorly--i.e. “get slaughtered”--are those who are greedy and who always chase the hot stocks or hold onto stocks too long.

You will almost never be able to sell a stock at exactly the right time--just as it peaks and starts to go down. If you try to do that, more often than not you will find yourself selling just as everyone decides to sell too and the price is falling like a rock. All of this said, selling is rarely easy.

In fact, I generally find selling much harder than buying. It is frequently pretty easy to spot a stock that is undervalued, but you may have to wait a while for other investors to realize how cheap your stock is and bid it up. If you’ve done your analysis correctly though, they eventually will. I often find it difficult to determine when a stock is getting fully valued. When a stock is rising, that usually means that there are a lot of smart people who have good reasons why they think it will go much higher still…and they may be right--for a while.

That is why we often recommend selling stocks that are performing very well. One of the keys to making money in the stock market is being content with taking solid profits--and leaving the pigs to fight over the last few points. 

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Return of Volatility? No, Return of "Normal"

Sizeable market moves can increase the temptation to sell on downdrafts and buy on upswings; however, we strongly advise against attempting to do that. The chances of getting out at the right time and then back in again before the market rebounds are extremely slim. Read More.

Harnessing Activists to Help Find Turnaround Stocks

Activist investors often produce attractive returns for their clients; and you can still use their influence to help your position as a turnaround investor in two ways: Buy a position in a stock with the expectation that an activist will soon follow or buy after an activist takes a stake.


Value Investing


While one of the many dozens of activist funds might find their way to selecting your particular stock, this approach is likely to be frustrating and unrewarding. A better approach is to buy after the activist makes their move. Once an activist takes a stake in a company, how do you evaluate whether it is worthwhile to follow on? Admittedly, this is a bit of an art... Learn how you can harness the power of activist investors to find market-beating turnaround stocks.

Turnaround Letter Stock Pick Named Top Performer of 2017


stock market advicex


What Last Year's Top Stock Pickers Are Buying in 2018


This Forbes write-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.


George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."