Stock to Sell – When Should Sell Your Stock?
When a investor by a stock it has to be sold. The profit or loss by buying a stock can be found only when it is sold. A stock broker would help a trader to choose a right stock at right price to estimate the outcome or profit, but actual profit can be made only when the investor sell the shares. An investor should be clear on when to sell the share which is not a easy step, the investor get unstable when the price is getting higher, the hunger of making more profit refrain them from selling the shares at correct time and later when stock price reduces investor losses the chance of making real profit. An investor should be able to control his personal feelings like emotions, sentiment and greedy in the market to make a balanced trade.
Set a Target
The investor tend to be safer in investment they choose, when the investor make new investment he/she prefer stock with previous record than a new stock. The stocks are characterized based its reputation, and is 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. The investor should tend to follow and keep in trace the company performance in which they have invested. If the price drop they would sell their shares.
Cost of Opportunity
The investor should keep a track on other shares too , they can compare the return of their existing shares with other 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
The company which are into the agreement of merging or acquisition can take a longer time to accomplish the deal. But it is always better to avoid investing in such companies and sell the shares of the company that is under merging or take over.