Investors often buy a company's shares because it has a competitive advantage that puts it ahead of competitors in the stock market. However, if the situation turns upside down and the company loses its competitive advantage, this means that investors will not continue to hold the shares, which will only increase the situation in losses.
طريقة بيع الاسهم في بنك الرياض
Once investors realize the fact that the company is deteriorating or heading in the wrong direction, the stock's performance in the stock market will inevitably decline, which means that it is better to follow the method of selling shares before it is too late and with less losses to avoid the woes of large losses that will inevitably become a reality once the stock price declines to reflect the company's declining performance.
However, if the stock's decline is the result of a temporary shock in the company's performance while the fundamentals are still solid, this temporary setback may represent a good opportunity to buy more of the stock when its price declines and before it rises again, so the assumptions on which the investor bases his investment decisions must be the result of a study and awareness of the size of the company and its ability to overcome temporary crises and recover.
Another reason that may prompt investors to sell or abandon shares is the emergence of better investment opportunities than current shares. The stock market always shows investment opportunities that cannot be missed, represented by excellent shares available at prices that may not be repeated again. If the investor does not have the necessary liquidity to seize this opportunity, he may find himself forced to liquidate part of the stock portfolio in order to be able to seize the share that he sees as having strong growth prospects that may compensate him for the shares he abandoned.