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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