When is the Right Time to Sell Stocks?

When is the Right Time to Sell Stocks?

Just tell me one quick fact that, Did you sell your stocks last time at right time? Probably not. Most of the people have this complain and that’s why they ask me that, Which is the right time to sell the stocks? Every stock has a buy price and a sell price.

Many people think of selling stocks within few days, week and months they buy which ultimately attracts the short term capital gains tax and nothing remains at the end of the transaction.

This Quick Guide will help you about when to sell your stocks and which are the parameters that you should look as an Investor while taking the decision of selling your stocks.

Here are the reasons to sell a stock.

- Are You Near Your Financial Goals?

- The Fundamentals of the Company in which you have invested are deteriorated?

- The Stock is over valued because of the Bull Rally?

If you answer ‘Yes’ to anyone or more of the above questions than The right time to sell the Stock is NOW…!!!! Let me explain you this by examples.

Suppose in the past, you have invested in the stocks for your child’s education. And today after 15 years, your child is in 11th standard. And within next 2 years, you will need that fund for your child’s higher education. Than this is the time to sell the stock.

If during the holding period of a stock, if you find that the fundamentals of the company are deteriorated than it’s time to sell the stock.

If analysts and experts have predicted that the stock will give you 20% return by the end of this year. But because of the foreign inflow, the stock has appreciated 50% in just 2 months than definitely, this is the time to sell the stock. Because this 50% valuation appreciation in just 2 months is not supported by any revenue growth or fundamental growth of the company. So it is advisable to book the profit.

Thus, the above are the 3 strong reasons to sell the stock. When it comes to taking Investment decision…Be Simple…Think in Simple way…Don’t think too much complicated when it comes to Investing…!!!