In my previous post, I’m attempted to elicit opinions on what to do with my EA stock once I get my first set of shares at the end of February. I got two answers from current EA stockholders, both of which told me to hold onto the shares for as long as possible.
I understand the holding on part but why for as long as possible? Wouldn’t it make more sense to sell the shares once the stock price reaches an advantageous level? If I buy at $45 and the stock prices rises to $75, why wouldn’t I sell? Unlike a savings account, shares can go up and down in value over time. The power of compounding interest and time doesn’t factor into stocks. What about holding onto stock makes it better than selling when the price is high? Let’s say I do hold onto my shares until I want to buy some property. What if at that time I need lots of money but my shares are actually worth less than what I paid for them?
I wish I had started to learn this stuff when I was in my early 20s.