This can be a real tricky one. You have to do it at the right time. When you decide to sell off your stock, be sure you are doing it for the right reasons.
Here’s a step-wise guide to do it:
Step 1:
Sell-off your stock, when you are not sure whether you can handle the risk. Maybe this game of speculation is sending you on a wild roller-coaster ride. In that case, select something that’s more conservative.
Step 2:
In case you bought a growth stock because you anticipated that to skyrocket on account of a merger or something likewise, in that case, sell it the moment you achieve the goal.
Step 3:
Avoid panic selling but do it when you really notice cloud in the horizon that’s likely to spell a disaster in the stock market.
Step 4:
When you find your stock falling between 6 to 8%, get rid of it. Let me tell you that this figure is an indication that there is a definite chance of a decline
Step 5:
It can happen so that your stock suddenly begins to receive lots of hype and love from the Wall Street. If due to this, your stock gets overrated, sell it out before you find the bubble getting popped.
Step 6:
Trust hard data to release your stock. Sell it when you feel it has reached its pea. So, the catch is in going as per facts to sell your stock rather than a gut feeling.
Step 7:
It may so happen that due to certain reasons, you find that your stock isn’t quite moving. Maybe at this juncture, you just might develop a liking towards the “story” of another company. Don’t jump into it. Rather, do a good research of the new name…gather the facts and then feel free to trade if you decide so.
Step 8:
Make sure that there is a balance in your portfolio. In case, you find that you have excess of stock of the same kind, simply sell off the weaker stock.
Tips…
Carry out an extensive research. Remember, investing is no way a gamble. Never trade solely on your hunches. Rather follow your hunch, if you have a strong hunch to back it up.
If you hear a piece of bad news about an otherwise strong company, don’t get panicked and start selling the stocks out of fear. In fact, it can be a boon in disguise. In fact, I can site you, with many instances where big groups have bounced back after being hit with a scandal or a temporary set back.
