15 Proven Tips To Know Best And Right Time To Sell Stocks

Proven Tips To Know Best And Right Time To Sell Stocks. A woman trader holding a watch to reflect the right time to sell a stock.

(2) Stock Hitting Stop Loss Levels

It is one of the most reasonable & proven tips to know best and right time to sell stocks. Stock movement is not unidirectional in nature. It can move on either side.

If you purchased a stock that depreciates significantly from your levels, you may encounter loss. But, you can limit your loss by placing stop loss order. This order is usually placed at a level you are willing to lose if the stock moves in opposite direction.

For example, you purchased a stock at a price say $100. You decided to cut your position if the stock falls below 10% i.e. below $90.

Stop loss order can help you to cut your positions automatically at those levels during trading hours. However, if your stop loss order doesn’t get executed due to any reason you should sell it manually at those levels.

[Read Also: 10 Ways Stop Loss Order Will Not Protect Stock Investment]

(3) When Stock Hits Your Price Targets

It is one of the most common & proven tips to know best and right time to sell stocks. A stock is known to fluctuate in a reasonable price range. You can’t buy at lowest price & sell at highest price.

Generally, you have to buy a stock around lower side of a trading range & sell it around the higher side of it. Once you purchased a quality stock, you should set a price target to sell & book profits.

You should always be realistic in setting price targets for your stock investment. For example, setting a price target of 20% to 25% from your purchased price would be a reasonable price target.

It is much better to set a range instead of single price target. However, you should never set a higher price target of say 50% to 100% of current price.

A higher price target of more than 50% indicates that stock is undervalued by more than 50%. It’s not possible under normal circumstances.

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3 Comments on 15 Proven Tips To Know Best And Right Time To Sell Stocks

  1. I have bought 5 lots of bharti infratel @343 and have rollover for march pls let me know can I see the price again in 3 months.and HW much downfall more is expected?

    • Editing Staff // February 28, 2017 at 8:55 AM // Reply

      You have ignored technical signals as well as stoploss to cut your positions immediately in an adverse situation. Bharti Infratel has recently touched its 52 weeks low after breaking all its support levels. It is trading at critical stage & therefore we don’t think it can again reach to the levels of Rs 343 within a month or two. You are advised to cut your position when a pull back for the levels of around Rs 315 is seen. Please always use stoploss to trade stocks everytime.
      Best Wishes
      GetUpWise Staff

  2. Thanks for the great article! These were some great tips, I especially liked #4. I’ve also written about this topic, and even shared some actionable strategies for what to do if you find yourself in a losing trade.

    Thanks again for the great stock selling tips!
    Jay

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