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.

(10) Portfolio Rebalancing

It is one of the most valuable & proven tips to know best and right time to sell stocks. Asset allocation is an important aspect of stock investment.

In stock markets, you can allocate your funds into stocks, mutual funds, bonds, and even keep some cash for unique opportunities.

You can earn a small but stable income with a portfolio of 75% bonds, 15% stocks, & 10% cash or money-market funds. Similarly, if you are looking for balance between risk & return then you can allocate your money in 50% stocks, 40% bonds, & 10% cash.

On the other hand, those who prefer to take high risk for high return then allocate money in 80-90% stocks, & 10% bonds or cash.

However, you need to rebalance your portfolio depending on level of risk vs. rate of return. A smart investor should rebalance his/her portfolio annually.

Rebalancing is a good way to trim holdings of a stock whose price is soaring. You should never allow excessive exposure of single stock in your portfolio. For example, if you own 20 stocks then each stock should not exceed 5% of total holdings.

[Read Also: 16 Tricky Ways To Identify & Pick Multibagger Stocks]

(11) Bad Management Decisions

It is one of the most significant & proven tips to know best and right time to sell stocks. Good management decisions are significant to run a successful business.

It helps them to lead their competitors as well as to boost its own growth. It also helps them to handle any difficult situations during bad economic conditions or even recession.

On the other hand, bad management decisions can increase difficulties in the way of even a good running business organization.

Some of the bad decisions that can ruin a company include hiring unskilled staff, firing top performing managers, taking excessive debts, merging unprofitable businesses & many more.

If you find an organization taking unrealistic & bad decisions then it is better to sell its shares & stay away from it. It is due to the fact that sooner or later their actions will be reflected in stock price also.

Thus it is rightly said that good management decisions can turnaround a bad company while bad management decisions can ruin a good company.

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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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