Last week I wrote about five characteristics of a winning stock, but as every seasoned investor knows, knowing when to sell a stock is just as important (some would argue more important), than knowing when to buy a stock.
Poor timing on an exit trade can be much more costly than poor timing on buying a stock, and a lot of profits can be left on the table if you miss the signs that a stock in your portfolio has started to run out of steam.
Taking this into consideration, this week we are going to look at five signs that a stock is running out of steam. Having a better understanding of the warning signs of a stock that is about to trade lower is a key ingredient to becoming a better investor, and will help boost returns down the road.
In some cases, it is not so easy to spot a stock that is losing its momentum, while in other circumstances, such as a big earnings miss, or weaker than expected earnings forecasts, it is easy to spot these stocks.
There is a wide-range of warning signs that a company can put off to signal rough times ahead. This week we will begin our discussion by taking a look at five signs that you can use as an indicator that perhaps it is time to exit a position or remove from your buy watch list.