When Should Sell Your Stock?

When an investor by stock, it has to be sold. The profit or loss by buying a stock can be found only when sold. A stockbroker would help a trader choose the right stock at the right price to estimate the outcome or profit, but actual profit can be made only when the investor sells the shares. An investor should be clear on when to sell the share, which is not an easy step. The investor gets unstable when the price gets higher. The hunger of making more profit refrains them from selling the shares at the correct time, and later when the stock price reduces, investors lose the chance of making real profit. An investor should be able to control his personal feelings like emotions, sentiment, and greed in the market to make a balanced trade.

 

Set A Target

Investor tends to be safer in an investment they choose when the investor makes a new investment, they prefer stock with a previous record than new stock. The stocks are characterized based on their reputation and are termed as seasoning. The seasoned investor fixes a price band or range, and if the target is reached, they consider selling it.

 

Keep An Eye

The NSE and BSE list the 52 companies which are low-performing stocks and determine whether the share can be sold or not. Investors should tend to follow and keep in trace the company performance they have invested in. If the price drop, they will sell their shares.

 

Cost Of Opportunity

The investor should keep track of other shares, too. They can compare the return of their existing shares with additional shares on the market. If the return is higher than the existing shares, the investor may sell the existing one and buy new shares of a different company.

 

The Takeover Situation

A company in the agreement of merging or acquisition can take longer to accomplish the deal. But it is always better to avoid investing in such companies and sell the company's shares that are under merging or taking over.