When to sell Stocks?
Selling a stock at the appropriate price is the most difficult task
for any Stock Market investor. Basic rule of Investing is minimizing
the losses and maximizing the profits.
When to sell a stock?
1. Has the stock reached your target? Never change your target without
any specific reason.
2. Has the share price fallen dramatically? It is a warning signal.
3. If Company's recent results are not good or Company's growth
prospects are poor.
4. If the price of the stock reaches new highs within a small time.
5. If stock price does not justify the inherent strength of the company.
6. Is company feeling the pressure on its margins?
7. Is there any good stock available at valuable price in the same
sector whose growth prospects are better than the present company?
8. Are there any recent allegations on the management? Ethics are more
important in the long term.
9. Never buy/sell a stock just based on the recommendation of a broker
or Friend. Do your own research before buying or selling any stock.
10. If you are a long term investor, never sell a stock due to decline
in price in 2 or 3 trading sessions.
Advice is easy but practice is difficult. Learn the art of selling a
stock by booking maximum profits. Practice makes a man perfect and if you buy/ sell the stock at the appropriate time you will minimize your losses and maximize your profits.
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