1. You buy 100 shares of Microsoft (MSFT) for $26.50, and a week later one of the company’s most powerful Executives is fired for “cooking the books”. The stock price nose-dives to $23.00. What do you do? Explain in detail.
Sell, this way only lost $350.00, and avoided lot of uncertainty.
2. You buy 100 shares of Intel (INTC) for $29.00. Three days later it drops down to $27.50. What do you do? Explain in detail.
Hold, stock up or down in a small range should be considered as normal.
Then trying to find the possible reasons, if there are ture reasons for the drop, then you may consider sell, otherwise just hold it.
7. You purchase a stock at $19.00 on a “TIP”. You promise yourself that you will sell when the price gets to $20. Before you can call your broker, the stock climbs to $20.10. What will you do? Explain in detail.
sell, stick to the game plan and a profit is a profit.
8. You purchase a stock at $22.00. You put a self-imposed stop loss on it at $20.00. Before you can call your broker, the stock crashes to $19.00, but slowly climbs back up and sits at $20.10. What do you do? Explain in detail.
Sell, stick to the game plan is very important especially when dealing with stop loss.
Sell, this way only lost $350.00, and avoided lot of uncertainty.
2. You buy 100 shares of Intel (INTC) for $29.00. Three days later it drops down to $27.50. What do you do? Explain in detail.
Hold, stock up or down in a small range should be considered as normal.
Then trying to find the possible reasons, if there are ture reasons for the drop, then you may consider sell, otherwise just hold it.
7. You purchase a stock at $19.00 on a “TIP”. You promise yourself that you will sell when the price gets to $20. Before you can call your broker, the stock climbs to $20.10. What will you do? Explain in detail.
sell, stick to the game plan and a profit is a profit.
8. You purchase a stock at $22.00. You put a self-imposed stop loss on it at $20.00. Before you can call your broker, the stock crashes to $19.00, but slowly climbs back up and sits at $20.10. What do you do? Explain in detail.
Sell, stick to the game plan is very important especially when dealing with stop loss.
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