Background: I'm a very small-time (eg. $100s), inexperienced trader. Currently, I'm buying and holding stocks that bear dividends.
When I evaluate stocks, I look at certain criteria; these have a specific purpose. For example:
- Market cap must be $10B or more (price manipulation less likely)
- Earnings per share exceeds dividends per share (sustainable dividends)
- And more.
As I add more of these criteria, previous holdings of mine may not meet some of the new criteria.
My question is, how do I evaluate if I should keep holding and buying, or just keep holding, or liquidate my holdings?
Because my profile is conservative and long-term holdings, I probably don't want too many holdings that don't meet my requirements. But I'm not sure how to determine when I should stop buying, or liquidate. (I would keep buying these holdings otherwise to ensure that no single holding dominates my portfoio.)
Edit: My goals can be prioritized as (in order):
- Build income generation through investment (eg. dividends)
- Invest in something "stable" that will go up in value (even if the horizon is 10+ years)