When to buy a stock is the important investment decision. The same is true for Selling stock. When to sell stocks is also a very important investment decision. This Quick Guide will teach you in detail that when you should sell your stocks?
01) When your Financial Goals are achieved -
The best time to exit is when your target is achieved. Suppose if you have invested in the stock market for the time horizon of 20 years and today if 20 years have been completed, than irrespective of the market conditions, you should sell your stock and book profit or loss. However, it’s very unlikely that after such a long time horizon, you are making any loss.
02) Go for Systemic selling plan -
Go for Systemic Selling Plan and at every level of upward rally, book some profit.
03) Sell when Promoters Sell -
It’s time to sell your stock when the insiders (Promoters) of the company are engaging in selling their stocks. Because this is the first sign of trouble in the company. Why Promoters sell their stocks? Only if there is something major wrong in the Business.
04) Exit Midcap and high Beta stocks when the market sentiments become unfavorable -
This is because midcap and high beta stocks are the most volatile stocks.
05) Exit when the fundamentals change -
If you think that the fundamentals of the company are changed than it’s time to sell your stocks. Analyze the Quarterly Financial Statements and if you find something that is not good for company fundamentals than exit the stock.
Thus, the above quick guide will give you some brief idea about when to sell your stocks?
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