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I recently bought a medical marijuana stock at its lowest point. It is estimated that it will reach a high price by 2023.

How can I know for sure when to sell out?

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  • No, however it is good advice because I'm also have been investing in long term. This is a short term profit only experiment for me, usually I'm conservative with diversified investments, however this is a aggressive stock. – Stressed4Success Dec 13 '19 at 16:15
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    Your question is not answerable. We have no idea when this stock (or even a market segment or even the whole market) will be at a high. You could look at metrics like P/E ratio to know if the stock is higher (relative to its earnings) than it has been, but those are only indicators. So sell either when you have enough profit that you aren't willing to risk any downside (cash out) or when you think the company has reached its maximum price. The first is subjective and personal; the second in not knowable. – D Stanley Dec 13 '19 at 16:35
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    The same source that told you it's at its lowest now. – Harper - Reinstate Monica Dec 13 '19 at 17:11
  • "It is estimated that it will reach a high price by 2023." Estimated by whom, and on what basis? – ceejayoz Dec 13 '19 at 17:50
  • Currently Canopy Growth actually at its lowest according to the performance over the past 15 years. And the source of the estimate was completely different, it was a snapchat advertisement about the whole medical marijuanna industry on a Marijuanna story I subscribed to years ago. – Stressed4Success Dec 13 '19 at 18:10
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The short answer is that it is impossible to KNOW when the best time is to sell a stock.

There are a number of reasons to sell a stock:

  • You need the money
  • Company fundamentals have changed
  • Share price has advanced very rapidly, perhaps unsustainably
  • The stock is overvalued
  • The stock is overvalued compared to its peers
  • The dividend has been cut
  • Portfolio rebalancing

Here's a crazy example for Tilray, another marijuana stock. Last year it went from about $60 to $150+ in two weeks. I would have booked that profit in a heartbeat and I wouldn't have shed many tears because it went to $300 the next day. Why? Because to me, a bird in the hand (a realized 150% gain) is worth more than the risk of loss of such a large gain (two days later it was under $100). Tilray is now a $19 stock. Make your decisions. Live with them. Avoid 'woulda, coulda, shoulda".

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  • I literally just bought that lol. Thank you for the advice though man. So sell when I feel the company has reached its max, or if It exceeds my standards for profit over what it could loose. – Stressed4Success Dec 13 '19 at 18:14

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