When to Sell Stocks?

Fund-Matters | June 5, 2018 | Financial Planning, NRI, Portfolio, Retirement Planning, Share Market, | 0 Comments

Investing is something many people opt for to gain profits. These profits are gained by either buying or selling of the stocks from a stock market. The most common mode of investing is the stock market. Good and smart decisions have the capability of making a person succeed at it while bad and emotional decisions in this field can make a person drown in losses.

Timing matters significantly when it comes to selling the stocks. The right decision at the right time can aid investors in making money. A successful investor is someone who understands the trends of the stock market and makes the right decisions at the right time. If you are thinking of selling your stocks, well, here are some of the tips to know exactly when to sell your stock.

1. The Hype:
A stock sells best when it is hyped and in high demand. When the stock you own begins to get more attention than usual and also receive a lot of buzzes, it might be the right time to sell off your stock. Always remember, higher demand means a higher price. If you wait too much, you might see the profit slipping right from your hands but don’t be too quick. Just wait for the right time and for this you might need the help of an advisor or expert.

2. Growth Stocks:
The stock market is not very good for stocks that do not grow. Keep on the track of the growth of growth stocks. When the growth begins to slow down, you must think about selling it because if the growth stops or becomes to fall, you won’t be able to book profit with these stocks. So, be wise and keep track of the growth.

3. Play it Safe:
If you have a profitable stock in your hand and you observe that its growth will last for a long period, it is a wise decision to sell only the 50% of your stock and get the profit and let the other 50% grow. This way you can fix an amount of profit and keep the other half for more profit. Even if the growth stops or begins to fall, you can sell the stock and you will still be able to stay in profit.

These are the tips to know when to sell off your stocks. Investing is more of a gamble. You never know what’s in store for you. It majorly depends on the person’s luck and of course, the strategies of how they play the investment game. Stock markets are unpredictable and nothing can be said if a particular stock will rise or fall. Sometimes, you just have to go with your intuition and if you end up with a loss, you must not stop investing. Even the best investors of all times made mistakes and these mistakes are what helped them learn and become a pro at the stock market.

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