Know The Market(Session-9)
Selling Strategies-
- It is harder to take good selling decisions than good buying decisions.
- Success of stock investments depends on selling them at the right time, otherwise all the gains are national.
- If you sell a stock too soon you may loose out on potential profits.
- If you sell a stock too late, you might turn a winning position into losing position.
When people sell stocks-
There are many reasons why people sell a stock-
- When a stock is no longer performing as you expected.
- Due to sharp run up in prices, one stock may become a large part of your overall portfolio.
- If you have made a wrong choice in selecting, it is better to take a small loss now, than a bigger loss later.
- Cyclical stocks - when the cycle ends.
- Ex : Metals, Sugar etc.
When to sell a winning stock-
- You need have a profit target, for your winning stocks also.
- You cannot hold it forever, because winners may turn losers.
- When a stock seems to be overvalued based on fundamentals or technical analysis.
When to sell a losing stock-
- If the stock is not performing and you have lost more than 7%-8%.
- When the company gets caught with legal battles, tax issues etc.
Strategies to sell stocks gradually-
- When you think about to sell the stocks which you have owned the you need not to sell all the stocks at one time,you can sell 10%-20% of your holdings at a time.
- Winning stocks can be sold gradually.
- Losing stocks once you decide to sell, it is good to sell all the shares at one go.
---Thank You---
1. Know The Market- Session-1
2. Know The Market- Session-2
3. Know The Market- Session-3
4. Know The Market- Session-4
5. Know The Market- Session-5
6. Know The Market- Session-6
7. Know The Market- Session-7
8. Know The Market- Session-8
9. Know The Market- Session-9
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