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Showing posts from September, 2019

When is the right time to sell your stock

With reference to investing, buying is a science but selling is an art. We will not go too specifically into the nuances of income statements and balance sheets but focus on some broad ideas to sell. We shall look at five such ideas with specific reference to the Indian context. Let us look at when to sell stocks? Sell stocks when your target is reached This is the primary rule for traders and an important rule for investors. If you are a trader then the focus must always be on churning your capital. A smart trader respects the stop losses and the profit targets as that discipline is the key to sustainable trading. Once the target is reached, then there should not be a rethink. Also, once the stock is sold, avoid looking at the notional gains you missed. While trading is understandable, what about investments, especially when you have taken a long term view on the stock? Check if the triggers still exist and whether there is a justification to revisit the targets. Alternatively, you c