Re:Mom and pop investors are on a stock buying spree, fueled...
by yellow_lead on Sunday February 23, 2020 @03:58PM
(#22399474)
> If I've been holding a stock for twenty years, when I go to sell it, do I really care if it takes twenty minutes instead of twenty milliseconds?
I think you may care actually. To give an example, I was holding a stock for several years that recently went up in price quickly, without much change in the underlying business. Simply, analysts started changing their rating on it. When this stock got high enough, I started to feel nervous, and I was watching the market open on a day when I was prepared to sell. Immediately, the stock started to tank, and I sold it right away.
I sold it at a good price, and even though I was a long term investor, I made a short term decision to sell based off the (IMO) extremely irrational price.
I think you may care actually. To give an example, I was holding a stock for several years that recently went up in price quickly, without much change in the underlying business. Simply, analysts started changing their rating on it. When this stock got high enough, I started to feel nervous, and I was watching the market open on a day when I was prepared to sell. Immediately, the stock started to tank, and I sold it right away.
I sold it at a good price, and even though I was a long term investor, I made a short term decision to sell based off the (IMO) extremely irrational price.