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How investing works

Lesson 31 · Written for kid, teen, and little

When should you actually sell?

Good reasons vs bad reasons to hit sell.

The idea

Knowing when to sell matters too. Reasons can include needing money for a goal, a change in the business, or adjusting the risk in your portfolio. A price dip or a quick gain alone does not tell you whether selling fits your plan. Review your reasons, goals and costs instead of letting fear or excitement make the decision. ✋

A

Words to know

3

Thesis

Your main reason for buying a stock; if that reason breaks, it may be time to sell.

Position

How much of one investment you own.

Portfolio

All of your investments added together.

Try it — no accountMake the call

You own three shares bought at $50 each, now priced at $90. After reviewing the business and risks, you still want some exposure to this company in your long-term plan and do not need the cash soon. Choose one option that keeps some exposure.

In the full lesson

  1. 1Make the call

Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.

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