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.

(4) Dividend Cut Or Eliminated

It is one of the most important & proven tips to know best and right time to sell stocks. Dividend is a sum of money that is typically paid by a company to its shareholders. It is usually paid on quarterly basis or annual basis.

Dividends are often decided by company’s management depending on quarterly earnings of the company. A company usually prefers to pay higher dividends if its earnings are increasing.

However, if its earnings are decreasing then it may either cut or eliminate dividend completely. Dividend cuts are serious events & often an indication of financial difficulties ahead.

If a company in which you are invested is cutting its dividend payouts then perhaps it’s right time to sell it. However, you should be wise enough to differentiate dividend cuts for positive reasons like business expansion, buy back offers, acquisitions & many more.

In such case, you can prefer to hold your shares until positive measures starts reflecting in its share price.

[Read Also: 10 Smart Reasons To Invest in Renewable Energy Stocks]

(5) Disruptions Hitting Invested Sector

It is one of the most ridiculous & proven tips to know best and right time to sell stocks. You invested in a given sector only after considering every aspect of stock investment. But, your investment strategy doesn’t work out due to tumbling of entire sector.

Some of the reasons that may cause tumbling of entire sector include unfavorable economic conditions, recession, political uncertainty, business restriction, & many more.

In such an adverse business scenario, there is a high probability of stock price to slide to significantly lower levels.

You should cut your positions irrespective to your profit or loss in a given script. Once the entire sector become business-friendly, you can start investing again for valuable gains.

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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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