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.

(12) Merger/Demerger Of One Or More Businesses

It is one of the most shocking & proven tips to know best and right time to sell stocks. Merger or demerger is a common phenomenon in stock markets. A company can buy a different entity to merge its operations with parent company.

However, a parent company can also demerge its subsidiaries into separate entities. This can significantly affect the stock valuation of a company.

If the merger goes in favor of investors then stock price may boost up. However, if it goes against investors then stock price may slide quickly.

Sometimes, investors of one entity may benefit more while investors of other entity may lose its value. In such situation, you need to smartly analyze the possible effect of such actions on your investment.

If you think merger or demerger may cause loss to your investment then its better to sell before the new entity comes into existence.

However, if you are lucky enough to own a stock that is acquired for significant premium then its better to sell to book your profits.

[Read Also: 14 Things High Public Shareholding Pattern Reflects In Stocks]

(13) Sell Stocks Because You Need Money

It is one of the most critical & proven tips to know best and right time to sell stocks. Cash is always considered as king. It is due to the fact that it is needed for day-to-day purchases as well as to meet emergency situations.

You can’t pay in terms of stocks or bonds to buy little or even big things. When you need money you have to sell your stocks especially when you don’t have enough extra money to meet your requirements.

Some of the basic things that demand huge money in cash include professional course fees, marriage ceremony, emergency treatment, travel trips, availability of better investment opportunity, & many more.

Once the need of ready cash arises, you have to sell stocks irrespective to its price levels. Therefore, investors are advised to invest money in stocks that you don’t need in short term.

You should only invest money that you can afford to lose in an untoward situation.

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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!

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