When to Sell A Stock in Stock Market

Discussion in 'Investment Strategies' started by Deepak Sahu, Apr 21, 2015.

  1. Deepak Sahu

    Deepak Sahu New Member

    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.
  2. sinip

    sinip Super Moderator

    Moved to more appropriate section.
  3. shreyaj830

    shreyaj830 New Member

    The stock market is completely unpredictable and is constantly evolving. Sometimes strategies make a lot of sense in theory but when you apply them you realize that the outcome depends on a lot of variables that can be tricky to factor in. When it comes to making investment decisions, what works is an understanding of the current market scenario and thorough research. You can try a virtual stock market such as Trakinvest at https://www.trakinvest.com/. It gives you a real life experience of the stock market and you can use it to experiment with strategies. It will also provide you with a bank of research reports based on which you can then create your own strategies and make informed investment decisions.
    Last edited by a moderator: May 15, 2015
  4. betsybee

    betsybee Super Moderator

    Referral links are only allowed in the Advertising section. Your post has been edited to reflect that.
  5. aditigupta

    aditigupta Member

    Yes its a very complex situation in which a trader has to decide whether he should sell its stock or not. Well there are many conditions on situation as mentioned above on which you can sell your stock. Studying market movements accurately and predicting in a correct manner plays a vital role in this. So depending upon the current movements of the market one should take this decision of selling or not.
  6. priya rajput

    priya rajput Member

    Looking at the current activities of the market, it can be estimated downward on the market, which shows when to buy stocks, when to sell.
  7. Anne Roberts

    Anne Roberts Member

    This, in market parlance, is called as squaring off a trade. Similarly, if you sell a stock first at a higher price and if you buy the same number of stock at a lower price on the same day then this is also termed as squaring off a trade. In both the above examples you are making a profit.
    Ayesha Jaiswal likes this.
  8. According to my opinion, perfect time sell a stock is when it hits your profit target price. When you feel that it is a better opportunity for you and you can sell your stock at a good price. Every trader fixes his profit target at the time of buying a particular stock.
  9. Aarna singh

    Aarna singh New Member

    I completely agree with you that you should sell your stocks when your target prices has been met.
  10. Aarna singh

    Aarna singh New Member

    Yes, this is really true. Market prediction is very difficult, hence we need to be updated to know about the market.

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