While quite a bit of time and research goes into selecting stocks, it is often hard to know when to pull out, especially for first time investors.

The good news is that if you have chosen your stocks carefully, you won’t need to pull out for a very long time, such as when you are ready to retire. But there are specific instances when you will need to sell your stocks before you have reached your financial goals.

You may think that the time to sell is when the stock value is about to drop, and you may even be advised by your broker to do this. But this isn’t necessarily the right course of action.
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I have been hunting around for the best places to invest my money for some years now. You see, I’m not an impulsive person. If anything, I am a little bit obsessive compulsive. I’m moreover a PhD. level student of mathematics. As such, I am interested in the mathematical reasons that underlie investment decisions. I’m also as interested in the mathematical basis behind stock market trends as I am with actually making money from them. Don’t get me wrong, once I figure out what the best investments actually are, even if that means high risk stocks and shares, I will go out and make a killing. So it’s not that I’m not that interested in making money, it is just that I have this innate desire to discover the underpinnings of the financial products that I am looking at, before I choose to invest in them. It’s just the way my mind functions.
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Before we need to know which stock to buy, we need to know the fundamental of an individual companies and how they perform in terms of revenue, profits, assets, and borrowing.

It is important to know about all these as the company’s share price is ultimately the market’s reflection of how valuable that company is. If a company is making profits and these profits are growing year on year, with borrowings contained to low levels and revenues also growing, then is an ideal company to invest in, provided we expect the company to continue growing at such levels.
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Before we need to know which stock to buy, we need to know the fundamental of an individual companies and how they perform in terms of revenue, profits, assets, and borrowing.

It is important to know about all these as the company’s share price is ultimately the market’s reflection of how valuable that company is. If a company is making profits and these profits are growing year on year, with borrowings contained to low levels and revenues also growing, then is an ideal company to invest in, provided we expect the company to continue growing at such levels.

Well, by looking at the fundamental of an individual company, a lot people fails to adopt either investing in a fundamentally strong company but doing so in a bad overall market or investing in a great company in a bad market sector.

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