Selling (When to sell stocks)

When is the best time to sell?



Selling is just as important as buying stocks. I had read a lot of books about buying stocks but not about seling. So.. when do you know when the stock is to be sold.. I think it is the same as when buying stock theres no such perfect formulas to follow---sometimes common sense should be applied-- but some criteria can be followed to achieve maximum profit.



Here are some criteria you can follow as your selling points. This depends on your goal and planning.



1. When you buy certain stocks you should already plan when to sell. O. K I give you an example if you buy a certain stock at 27.50 per share you can put it in your mindset that if it goes up to 33.00 that's the time to sell your stock, that's a 20% profit already. What if the scenario is inverted and the stock you bought instead of climbing up it goes down, you should be prepared to accept a loss, once the stock you buy drops to around 8-10%.

2. Sell stocks when it start to drop in price after a prolonged upswing, like when you are holding a stock for few months in an upswing trend then it start to drop in price it is time to dispose the stock.

3. When you learn that the company is experiencing bad debt.

4. When you observe that the products of certain company is inferior or people are not patronizing the product or services.

5. When the dividend income is lower than the previous one.

6. When the earnings of the company is decreasing.

7. When every price of a stock in that industry or sector is dropping.