I am still trying to wrap my head around basic stock strategies using our virtual cash on the platform. I bought some FIDELITYBK shares a couple of weeks ago when they dipped slightly, and now I am not sure if I should take my tiny profit or just leave it to see what happens. How do beginners usually know when it is time to exit a trade versus holding for the long term?
How do you guys decide when to sell on the NGX simulation, or do you just hold forever?
3 Answers
I am facing the exact same dilemma with my little FIDELITYBK stake right now, wondering if I should grab this tiny virtual profit or just leave it to see what happens. From what I have been reading, some people set a target percentage before entering a trade, while others just treat the simulation like a long-term savings box. How do the more experienced learners here usually decide when it is actually time to exit versus holding forever?
Welcome to the simulation, my dear student, where we learn how the market works without any pressure. Deciding to sell simply means you write down your personal goal before you start, like taking your small profit when it reaches a number you planned. If you choose to hold for the long term instead, you are waiting to collect yearly rewards called dividends, which are just extra cash the company shares with its owners. Since this is just practice, try selling one part of your shares and holding the other part so you can learn how both choices feel.
Think of selling a stock like harvesting okra from your garden when it is ripe, rather than waiting for it to spoil on the branch. Since this is just practice money, decide your goal before you enter the market, such as taking your profit when it reaches a ten percent gain. If that target is met or your reason for buying changes, it is wise to sell and lock in your virtual gains instead of hoping forever.
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