Skip to main content

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 ! 



Labels:

Comments

  1. AnonymousJune 2, 2021 at 9:17 PM

    That is nice content.. Thanks for sharing

    ReplyDelete

Post a Comment

Popular posts from this blog

When to buy a stock ?

There are so many factors you should consider before buying a stock... In this article I will be telling you 7 Most important factors you should check before buying any stock.   This 7 things will help you for selecting a stock for long term! So let's begin...  1.Business Model     This is a most common thing you should know before investing in a company. You should understand the business model,  what the company do and how it makes profits and will this company survive in recession and if yes then why or how?     Ask yourself this kind of questions and if got the right answer's then good to go on second point.  2.Revenue  Revenue of the company must be increasing year after year... You can check this by visiting any Financial website, one which I use is screener.in  See human population is increasing year after year right? And it will of course continue increasing in future so the customers of the company also should inc...
Post a Comment
Read more

5 Tips to Become professional Investor and trader

1_LEARNING CONTINUOUSLY Never stop learning ,If you have reached your goal and you think that '' i am best trader/investor NOW then you are just fooling yourself ! Learn from your mistakes and learn CONTINUOUSLY , never stop learning because if you stop learning then you are going to get replace by someone else who knows new skills then you !!  2_DON'T MAKE SAME MISTAKES One is good if he learns from his mistakes but one is better if he learns from others MISTAKES ! So learn from others MISTAKES don't waste your time doing the same mistake !  3_NEVER LISTEN TO MARKET NEWS  Most of news which are in Market are just noise and they are not important too ! People who can't make money by investing in Stocks they start forecasting about stocks ! So just follow your instincts and your knowledge !  4_MAKE A JOURNAL  Always make note of all your transactions in a journal and read that book once in a month and try to learn what MISTAKES you have done and make sure you don...
Post a Comment
Read more

Some lessons to be learned !! by Peter Lynch

Worth to remember !! 1. Never own anything which you don't understand. 2.Logic is the subject which will help you most in picking stocks. 3.Avoid Hot stocks and Whisper stocks. 4.Once you are able to explain the story to a guy who has 0 knowledge of stocks and he understands properly then you have a real grasp of a situation! 5.Try to invest in companies who has a strong balance sheet and less debt. 6.P/E ratio plays vital role... so compare it with the peer companies, the lower the better! 7.Never listen to professionals, kindly do your own research ! 8.Buying a company with mediocre prospects just because the stock is cheap is LOSING Technique. 9.Selling an outstanding Fast grower because it's stock seems slightly overpriced is a LOSING Technique 10.Market declines /Corrections / Recession are the great opportunities to buy great companies at cheap price!
Post a Comment
Read more