When to sell your stock | Fusion - WeRIndia

When to sell your stock

When to sell your stock

There are many investors out there who are not sure about when to sell their stock. Selling your stocks at the right time can mean the difference between profits and loss. Holding your stocks should not happen for too long. Here are some things you should look out for to help you sell the stock.

Unfair trade practice

If there is any information regarding unfair trade practice, then it is highly recommended to sell your stocks. Try not to invest in companies which are involved in fraudulent activities.

Low credit rating

If you have invested in debt instruments, you should keep a check on the credit ratings. Try to reduce your risk exposure in such instruments.

Not getting proper returns

If the stocks you have brought are consistently not doing well and resulting in poor returns, it is recommended to sell them before bearing further losses. Many people tend to hold the stocks hoping that they will recover. However, this is not recommended.

Market conditions

When you have invested in equity, it is important to remember that it is subject to market risk along with different macro-economic, industry, etc factors. Try to sell your investments when the market is high to get better profits on your investments. Avoid timing the market.

Change in Investment Objective

Investment objectives tend to change as you grow older. People tend to look for fixed income securities instead of selling shares. If the investment objective changes, then it is time to sell your stock. If you are nearing retirement, you might look for fixed income securities instead of higher risk investments.

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