Growth stocks can mean different things to different people, but I personally define a growth stock as being shares in a company that continues to increase both it’s earnings and dividends each year (and has a long history of doing so). So with that in mind, I want to talk about when you should sell these stocks, because this is very important. 

If you’re lucky enough to have found some good quality growth stocks and are sitting on some decent profits, then it can be tempting to bank your profits and reinvest the proceeds elsewhere. However, as Warren Buffett will tell you, this isn’t necessarily the best strategy. 

The best strategy, provided that you’re prepared to hold on to your shares for the long term, is to resist the temptation to sell and hold on for further gains. Yes there may be short-term fluctuations along the way, but providing that the company in question continues to increase both it’s earnings and dividends each year, there is no need to sell because the share price will eventually rise to reflect this continued growth. 

If you hold on to shares for as long as a company continues to grow and reinvest the dividends received each year, then you can be sure that you will be sitting on some substantial gains when you do finally decide to sell. This is something that Warren Buffett does to devastating effect. He simply looks for outstanding market-leading companies that continue to grow their profits each year, and holds on to these shares for years and years to benefit from both capital growth and dividends. 

It requires a great deal of patience because in the short-term the share price can fall in line with the overall market, but in the long-term it rewards you with some fantastic profits. The difficulty is finding the right companies to invest in, but there are some obvious candidates amongst some of the large-cap stocks. For example here in the UK Tesco is a fantastic company because it has a long history of growing both it’s earnings and dividends. Indeed I believe Buffett himself owns shares in Tesco at the time of writing. 

So to answer the original question of when should you sell your shares in growth stocks, you should hold on to your shares for as long as possible to benefit from both capital growth and dividend reinvestment. The only time you should consider selling is when there is a danger that the company may stop increasing it’s bottom line each year, maybe due to another major competitor gaining market share, for instance, because that will obviously mean that the share price is unlikely to continue rising in future years.

Washington, DC (PRWEB) November 8, 2007

Growth stock investors looking for high quality investment research in the mid cap and large cap sectors can now turn to Top Stock Insights, which launched on November 8.

Top Stock Insights aims to bring investors mid cap and large cap growth stock picks that will deliver market outperforming returns with limited downside risk. Each month, Top Stock Insights members will receive two new growth stock picks.

Top Stock Insights is an investment newsletter led by Ian Wyatt, a seasoned investment expert whose stock picks have been raking in gains for individual investors since 2001.

As the editor and chief investment strategist of Growth Report and Rising Star Stocks, Wyatt has delivered market outperforming average annual gains of +16.7% and +33.6%, respectively, since launching those investment newsletters in 2001 and 2004. Wyatt is an investment expert who has written for Marketwatch, and whose expertise has been written about or has contributed to Barron’s, Zacks Investment Research, Forbes.com, MSN Money and AOL Finance.

Visit Top Stock Insights today at to sign up for a free 30-day trial membership.

To try Top Stock Insights without cost, risk, or obligation – click here now: https://www.topstockinsights.com/s.cfm?oid=105&r=pr_110807.

“Large growth stocks continue to provide amazing returns for investors,” said Wyatt. “At Top Stock Insights, our research team strives to uncover large growth companies that are market leaders with proven financial performance, a distinct competitive advantage, an expanding market, and an attractive valuation that will allow our investment newsletter members to see big gains.”

Top Stock Insights is an online investment newsletter service that provides its members with a monthly investment newsletter available online and in print, weekly investment portfolio updates, regular buy and sell alerts, and regular special investment research reports.

Investors can start a 30-day risk-free trial membership online and lock in a $ 150 discount on an annual subscription. During the month of November, Top Stock Insights is discounted to $ 49.95 for the first year. Start a trial membership to the investment research newsletter by clicking here now: https://www.topstockinsights.com/s.cfm?oid=105&r=pr_110807.

Top Stock Insights is the latest investment newsletter service from Business Financial Publishing. Business Financial Publishing was founded in 2001 as an online publisher of investment information. The company’s well known investment services include Newsletter Advisors, SmallCapInvestor.com, Growth Report and Rising Star Stocks.

About Top Stock Insights

Top Stock Insights is an investment newsletter led by editor and chief investment strategist Ian Wyatt and his research team in Washington DC. Top Stock Insights provides its members with consistently reliable mid cap and large cap growth stock picks, uncovering companies with proven financial results, a competitive advantage, market growth drivers, and an attractive valuation. Top Stock Insights is published by the same investment research team that has provided investors with big gains through the Growth Report and Rising Star Stocks investment newsletter services.

###

©Copyright 1997-

, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Brittany Umar details some of TheStreet.com Ratings prime picks.
Video Rating: 4 / 5

Growth stocks can mean different things to different people, but I personally define a growth stock as being shares in a company that continues to increase both it’s earnings and dividends each year (and has a long history of doing so). So with that in mind, I want to talk about when you should sell these stocks, because this is very important. 

If you’re lucky enough to have found some good quality growth stocks and are sitting on some decent profits, then it can be tempting to bank your profits and reinvest the proceeds elsewhere. However, as Warren Buffett will tell you, this isn’t necessarily the best strategy. 

The best strategy, provided that you’re prepared to hold on to your shares for the long term, is to resist the temptation to sell and hold on for further gains. Yes there may be short-term fluctuations along the way, but providing that the company in question continues to increase both it’s earnings and dividends each year, there is no need to sell because the share price will eventually rise to reflect this continued growth. 

If you hold on to shares for as long as a company continues to grow and reinvest the dividends received each year, then you can be sure that you will be sitting on some substantial gains when you do finally decide to sell. This is something that Warren Buffett does to devastating effect. He simply looks for outstanding market-leading companies that continue to grow their profits each year, and holds on to these shares for years and years to benefit from both capital growth and dividends. 

It requires a great deal of patience because in the short-term the share price can fall in line with the overall market, but in the long-term it rewards you with some fantastic profits. The difficulty is finding the right companies to invest in, but there are some obvious candidates amongst some of the large-cap stocks. For example here in the UK Tesco is a fantastic company because it has a long history of growing both it’s earnings and dividends. Indeed I believe Buffett himself owns shares in Tesco at the time of writing. 

So to answer the original question of when should you sell your shares in growth stocks, you should hold on to your shares for as long as possible to benefit from both capital growth and dividend reinvestment. The only time you should consider selling is when there is a danger that the company may stop increasing it’s bottom line each year, maybe due to another major competitor gaining market share, for instance, because that will obviously mean that the share price is unlikely to continue rising in future years.

Best answer:

Answer by Ron Berue
You sort of have it right. BUT a stock’s price moves because of volume.
V.I.C. P.I.E.
Volume Is the Cause. Price Is the Effect.

The stock market is already divided into three general categories:
Large Cap: [High Volume}

Mid Cap: [Medium Volume]

Small Cap: [Low Volume]

AND Here are a few other sayings about the market – which are true:

1] There aren’t any gifts on Wall Street.

2] Bulls earn money. Bears earn money. Pigs get fat.
Hogs [greedy traders] get slaughtered – they lose A LOT of money!

3] Trees don’t grow to Heaven – neither do stocks!

4] A trader can earn money when the market goes up!
A trader can earn money when the market goes down!
A trader can earn money when the market goes sideways!

5] A trader trades people – not stocks, bonds, options, currency or any other commodity.

6] Plan your trade. AND trade your plan!

There are many others.

Thanks for asking your Q! I enjoyed taking the time to answer it!

VTY,
Ron Berue
Yes, that is my real last name.

Add your own answer in the comments!

There are some fundamental things that a potential investor must consider before investing in a particular equity. These things are very important because they are the things that determines the success or otherwise of your investments. Growing your investments depends largely on you, the investor.

Some of the things to consider especially when investing in growth stocks are.
1) The management: Do they have a good management team that you believe can take the company to another level? What is the vision of those saddled with the responsibility of piloting the affairs of the company?
2) What is the financial state of the company? Are they struggling with depts. And mounting threatening loans from the banks, are they struggling to survive, or is the company financially stable? This is very critical for your investment decision.
3) Is the present economic situation of the country favorable for sub sector of the company you want to buy into or not?
4) What is the value of that particular stock? Is it fairly priced, over priced or under priced? All these are critical issues that must be carefully analyzed before investing.

It is not easy to figure out the best entry price for a fundamentally sound stock, but it is something that you must try and do before investing, if you really want to make a success in your investments.

An investor that identifies a growth stock will be tempted into investing all his funds into that particular stock hoping to compound wealth as the company grows, but this is not professional. It is important to know that opportunity does always exist in the stock market, so if the investor invests all his funds in one particular stock and the next moment, he sees another that is better, he will be left with nothing. I.e. you have locked yourself out of fresh opportunities.
So before investing, the first thing the investor must do is to decide on a strategy he wants to adopt in trading. He may decide to go for “value” stocks, or for “growth” stocks. Investing in both is not bad depending on your capital, however, professionally, it is better to focus on one. It is better to study the two and follow the one that best suites you. This will make you a better investor.

Some characteristics that are common with growth stocks are:
1) Average growth: If you look carefully, you will notice that the average revenue growth of these companies, compared with other companies not in this category is not the same, theirs is always higher.

2) They are mostly in the bracket of industrial sectors that are expanding continuously. They are not limited to a particular geographic or economic set-up.

3) They seldom pay dividends to their share holders.

4) Because of their aggressive marketing strategies, most of the times, their growth surpasses their earning forecasts.

5) How long you will hold your investment here is determined by the growth of the company.

In conclusion, investing in growth stocks is all about investing for the future. The investor must be able to predict whether such company will be able to maintain the tempo or not. This means that he must know in details, the plans of the company for the future. He must know their earning target for a year, their revenue base, plans for their sales promotions etc. Fortunately, it is very easy to get all these necessary information that one needs are available on the internet. With careful study and planned investment strategy, growth stocks can really take somebody from zero to hero within a little space of time.

Washington, DC (PRWEB) November 8, 2007

Growth stock investors looking for high quality investment research in the mid cap and large cap sectors can now turn to Top Stock Insights, which launched on November 8.

Top Stock Insights aims to bring investors mid cap and large cap growth stock picks that will deliver market outperforming returns with limited downside risk. Each month, Top Stock Insights members will receive two new growth stock picks.

Top Stock Insights is an investment newsletter led by Ian Wyatt, a seasoned investment expert whose stock picks have been raking in gains for individual investors since 2001.

As the editor and chief investment strategist of Growth Report and Rising Star Stocks, Wyatt has delivered market outperforming average annual gains of +16.7% and +33.6%, respectively, since launching those investment newsletters in 2001 and 2004. Wyatt is an investment expert who has written for Marketwatch, and whose expertise has been written about or has contributed to Barron’s, Zacks Investment Research, Forbes.com, MSN Money and AOL Finance.

Visit Top Stock Insights today at to sign up for a free 30-day trial membership.

To try Top Stock Insights without cost, risk, or obligation – click here now: https://www.topstockinsights.com/s.cfm?oid=105&r=pr_110807.

“Large growth stocks continue to provide amazing returns for investors,” said Wyatt. “At Top Stock Insights, our research team strives to uncover large growth companies that are market leaders with proven financial performance, a distinct competitive advantage, an expanding market, and an attractive valuation that will allow our investment newsletter members to see big gains.”

Top Stock Insights is an online investment newsletter service that provides its members with a monthly investment newsletter available online and in print, weekly investment portfolio updates, regular buy and sell alerts, and regular special investment research reports.

Investors can start a 30-day risk-free trial membership online and lock in a $ 150 discount on an annual subscription. During the month of November, Top Stock Insights is discounted to $ 49.95 for the first year. Start a trial membership to the investment research newsletter by clicking here now: https://www.topstockinsights.com/s.cfm?oid=105&r=pr_110807.

Top Stock Insights is the latest investment newsletter service from Business Financial Publishing. Business Financial Publishing was founded in 2001 as an online publisher of investment information. The company’s well known investment services include Newsletter Advisors, SmallCapInvestor.com, Growth Report and Rising Star Stocks.

About Top Stock Insights

Top Stock Insights is an investment newsletter led by editor and chief investment strategist Ian Wyatt and his research team in Washington DC. Top Stock Insights provides its members with consistently reliable mid cap and large cap growth stock picks, uncovering companies with proven financial results, a competitive advantage, market growth drivers, and an attractive valuation. Top Stock Insights is published by the same investment research team that has provided investors with big gains through the Growth Report and Rising Star Stocks investment newsletter services.

###

©Copyright 1997-

, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Many of the best performing stocks in history have been growth stocks. Taser International went up in price over 2200% in about 10 months. Qualcomm increased about 2100% in 11 months. Yahoo went up over 6700% in 2 1/2 years. You have to know what to look for. You must trade them properly. You need to implement successfully proven, buying and selling rules. Doing all of that, you certainly could make a fortune trading growth stocks.
 
A growth stock is defined, as a stock of a company which is growing earnings and sales, faster than its industry or the overall market. Earnings are the number one factor when it comes to a stock’s price advancement. Most of the time, there is no legitimate reason for a stock to rise in price, unless it has decent earnings. The best performing growth stocks usually have exceptional earnings and sales.
 
The key to making big profits trading growth stocks, is having a trading plan that gives you an edge, or in other words, puts the odds in your favor. It is vitally important to put as many factors in your favor as possible before taking a position in the stock market.
 
The first factor I consider is the general market direction. The stock market needs to be in a confirmed uptrend. This is because about 75% of all stocks follow the general market trend. Growth stocks can correct double as much as other stocks during a downtrend. They also tend to make the biggest price advances when conditions are right. Knowing this, it is a must to properly analyze the trend of the stock market.
 
I look for fundamentally strong stocks, with excellent earnings and sales numbers. I search for younger, innovative companies with new exciting products and/or services. This tends to keep the company’s fundamentals strong for a long time. Great earnings are a must for growth stocks to do really well.
 
Technically, I want a stock to have built a sound base, or chart pattern. This includes a cup-shaped base, a double bottom, or my favorite, a flat base pattern. There are a few other historically proven patterns I watch for as well. The stock should be near or at, a 52-week high in price. Better yet, approaching or at, a new all-time high in price. At this point, I am looking for the stock to break through a key resistance area on heavy volume. This tells me big institutions are supporting the price advancement.
 
There are other fundamental and technical factors I consider before trading a growth stock, but this should give you a good idea of how it is properly done. As always, money management is critically important. You must keep all losses small. Implementing proper selling rules are also an important factor in your overall trading results. When traded properly, growth stocks offer tremendous profit potential.
 
 

I’m limited to a handful of funds, a mix of the following. How would you distribute 100%* among these funds:

Inflation Protected bonds
High Yield (junk) bonds
Balanced bonds

Large-cap stocks “value”
Large-cap stocks “growth”
Large-cap stocks “blend”
Mid-cap stocks “blend”
Mid-cap stocks “growth”
Small-cap stocks “value”
Small-cap stocks “blend”
Foreign stocks
World stocks

I need insider info! Give it to me! Please!! (Just kidding SEC)

Thanks in advance – any advice is greatly appreciated.

*put a percentage from 0% to 100% next to each fund until you’ve “spent” 100%.

Best answer:

Answer by nk aka tswizzy
Look to invest in banks.
They’d hit an all time low and are bouncing back with vengeance.
They offer high yield’s are a relatively low risk investment.

Know better? Leave your own answer in the comments!

Many of the best performing stocks in history have been growth stocks. Taser International went up in price over 2200% in about 10 months. Qualcomm increased about 2100% in 11 months. Yahoo went up over 6700% in 2 1/2 years. You have to know what to look for. You must trade them properly. You need to implement successfully proven, buying and selling rules. Doing all of that, you certainly could make a fortune trading growth stocks.
 
A growth stock is defined, as a stock of a company which is growing earnings and sales, faster than its industry or the overall market. Earnings are the number one factor when it comes to a stock’s price advancement. Most of the time, there is no legitimate reason for a stock to rise in price, unless it has decent earnings. The best performing growth stocks usually have exceptional earnings and sales.
 
The key to making big profits trading growth stocks, is having a trading plan that gives you an edge, or in other words, puts the odds in your favor. It is vitally important to put as many factors in your favor as possible before taking a position in the stock market.
 
The first factor I consider is the general market direction. The stock market needs to be in a confirmed uptrend. This is because about 75% of all stocks follow the general market trend. Growth stocks can correct double as much as other stocks during a downtrend. They also tend to make the biggest price advances when conditions are right. Knowing this, it is a must to properly analyze the trend of the stock market.
 
I look for fundamentally strong stocks, with excellent earnings and sales numbers. I search for younger, innovative companies with new exciting products and/or services. This tends to keep the company’s fundamentals strong for a long time. Great earnings are a must for growth stocks to do really well.
 
Technically, I want a stock to have built a sound base, or chart pattern. This includes a cup-shaped base, a double bottom, or my favorite, a flat base pattern. There are a few other historically proven patterns I watch for as well. The stock should be near or at, a 52-week high in price. Better yet, approaching or at, a new all-time high in price. At this point, I am looking for the stock to break through a key resistance area on heavy volume. This tells me big institutions are supporting the price advancement.
 
There are other fundamental and technical factors I consider before trading a growth stock, but this should give you a good idea of how it is properly done. As always, money management is critically important. You must keep all losses small. Implementing proper selling rules are also an important factor in your overall trading results. When traded properly, growth stocks offer tremendous profit potential.