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When Should I Sell A Stock
When Should I Sell A Stock
As a trader nor as an investor this question would have been in your mind from the very first day you started your trading. When people normally see a bull phase in the market they start asking Should I Sell? You would very well know that how volatile the share markets were performing this year and you have seen the bottom and now you have also seen the revival coming back in but when its the time to make right decision we would always struggle for a right decision.
Your mind would be on double stand that is the case with me too. When we feel that we should sell it we might get hooked up thinking oh it would work out better tomorrow and I would loose that gain? and if you did not sell it and seen a lower price than what was seen yesterday then we would curse the decision that was not to sell. So in short taking a selling decision is critical. I would add buying too.
If you look in the long term view you should only invest in stocks that are having good company fundamentals. But normally what is seen is that we keep a stoploss price and sell our stock when the market tumbles. Its not the right way invest in a stock after good research and if you feel confident with the business model. You can sell the stock if the performance of the company is lower than expected. Lower sales, lower profits are sings that we should look into.
Another good method that many people adopt is by selling half the stock of what they have and enjoy the profits. This is mostly followed when the price is actually risen to a greater extend than the buying price.
Investors need to balance their portfolio periodically, it would help you in times when certain sectors fail to perform. Do you have anything else to add Feel free to write in the comment box. I would like to hear from you.
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