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When to sell a stock?


 In this article I'll be considering that you are a value investor Or long term investor and you have buyed a stock after doing your homework ... So When to sell a stock which you have buyed in hope that it will turns out to be multi-bagger stock in future! 

Let's begin, 

1.Purpose 

When the purpose of the stock is fulfilled then you can sell it, Means For what purpose you have buyed it in first place is Fulfilled then you are good to go! 

2.Fundamentals 

Fundamentals plays a vital role in checking companies Health . You should sell a stock when it's fundamentals starts decaying... What I mean by fundamentals is the financial papers like P&L statement, balance sheetsheet and Cash flow statement! 

How you can check is, if the company started manipulating it or when a companies debt is increased or if company is Defaulting it's debt payment or if there is some corruption going on in the Company! Or when the profits starts to decreasing, then ask yourself why and many more factors. 

3.Better stock 

When you got a better stock then what you are holding....then you should not give it second thought you should sell it !  

4.Uneasy 

When you started to feel uneasy in the market about your decision then most people say you should sell your stock but i won't suggest that ... In this case it's better to sell half of your stocks ! 


Conclusion 

1.Purpose of stock is over . 

2.Fundamentals starts to decay . 

3.When you got better stock . 

4.When you feel uneasy in the market ! 



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  1. AnonymousJune 2, 2021 at 9:17 PM

    That is nice content.. Thanks for sharing

    ReplyDelete

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