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 sel...