Everyone knows that buying right stocks at right price is vital in share markets. But, selling stocks at right time is also equally important. You can’t realize profits until you sell your stocks. These proven tips to know best and right time to sell stocks can really help you.
Stock analysts, brokers & investment managers are often interested in providing stock buying tips. They usually ignore advises for selling stocks. You can’t completely rely on them to know when to sell stocks.
According to a post published in Investopedia, buying stocks at right price is vital as it determines the profit gained. But, selling at the right price guarantees the actual profit, if any.
You can’t buy & hold even quality stocks for indefinite amount of time. There are certain occasions when you need to sell even outperforming stocks for various reasons.
You need to develop your own strategies or price targets to sell stocks. Here are 15 proven tips to know best and right time to sell stocks:
(1) 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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15 Proven Tips To Know Best And Right Time To Sell Stocks