How to Use Margins to Determine When to Sell Stock

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There are too many factors that go into selling stocks to put into one article. The margins are one of the factors you need to understand for investing. Think of this as putting another tool in your tool box. You can make good money in the stock market.  This will give you the knowledge to accurately predict positive and negative trends, which will undoubtedly play a role in your decision.

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The gross margins are the profit made before any overhead or expenses. A rising gross margin will tell you that the company is either lowering the cost of making their product or the product has simply gone up in price. A falling gross margin means production costs and the product price are moving closer together.

Operating margins are the profit made after all the overhead and expenses. An increase in operating margins usually means operation is growing more efficient. A fall in operating cost means an increase in advertisement and marketing costs.

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Tips & Warnings

  • Keep up with news.
  • The more you know the more money you will make.
  • Never act on a pulse, think about every investment.
  • There is no exact science to the stock market.
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