When Should We Sell Stock?

Suba

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When we have decided to invest in stock instruments, we will be faced with the question of what stocks to buy, at what price and when to buy stocks for both short and long term investments. The market value of stock prices will fluctuate, so investors also need to have guidelines, to manage their shares well, but sometimes they also encounter difficult problems, namely when is the right time to sell shares, what do you think?
 

cherry123

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I think the logic has always been buying stocks wheh they are low snd selling them when the price is high or right. This is why it is good to work with a stock broker
 

Suba

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I think the logic has always been buying stocks wheh they are low snd selling them when the price is high or right. This is why it is good to work with a stock broker
In theory you are right, but many investors sell stocks when they need emergency funds, so they will sell stocks at any market price. Investors can also sell shares when the target profit has been reached etc.
 

cherry123

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Yesh it seems different people sell their stocks for different reasons and at different times but I agree with you about them needing emergency funds my cousin do that a lot with his stocks
 

Suba

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Yesh it seems different people sell their stocks for different reasons and at different times but I agree with you about them needing emergency funds my cousin do that a lot with his stocks
You are right sis, many investors forget to have an emergency reserve fund and save it in a bank account or at least in short term investments before investing in stocks which are long term investments. There are also many investors who are trapped in IPOs, because the performance of the shares they own is not as good as they predicted, so they also have to cut losses.
 

Yohanna

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Yesh it seems different people sell their stocks for different reasons and at different times but I agree with you about them needing emergency funds my cousin do that a lot with his stocks
It is true! Because selling your stocks different depend on preferences and your needs
 

Suba

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It is true! Because selling your stocks different depend on preferences and your needs
That is why we need to monitor and evaluate the stocks that we hold, so that if our predictions find discrepancies in one type of stock, we must immediately sell it and buy other stocks with more potential.
 

riberet19

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Well I think we should do this when we have achieved a decent return, when the stock has lost part of its fundamental, or on the other hand when it is at historical maximums because there is a good chance that when it is at historical maximums it will regress.
 

Suba

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Investors will also sell when the stock market price is too expensive or overpriced which refers to the Price Earning Ratio so that it has reached a saturation point, and the price will reverse down.
 

Springtime

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I buy stocks for long term investment. I buy dividend paying blue chip stocks. I seldom sell stocks because I receive dividends on a regular basis. That is a great source of passive income. Unless I am really making very decent return on the stock, I may consider to sell it.
 

Suba

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If you hold bluechip shares, of course the price is very stable and very suitable for long-term investment and you will get passive income from dividends, blueship stock market price movements are very slow, so most bluechip shareholders will sell shares when they need cash as an emergency. .
 

Suba

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Knowing the right time to sell the stock is very crucial because that is when you will make the maximum profit out of the investment.
You are right, we can sell shares when the profit target has been reached, you also need to immediately sell the shares that you hold when you detect symptoms that the issuer's company is shaking or losing and is likely to go bankrupt.
 

astutimeliana723

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In theory you are right, but many investors sell stocks when they need emergency funds, so they will sell stocks at any market price. Investors can also sell shares when the target profit has been reached etc.
Yes, That's right, I totally agree with you. That's the reality that happened. If you sell at a price below the purchase price, you will lose money. That's why it's so important to have an emergency fund before deciding to invest.
 

Suba

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We need to sell shares when the stock price has reached overpriced or the stock price is too high in the capital market so that it will reverse and the price will fall. Use the price earning ratio to measure stock prices.
 

flower

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We need to sell shares when the stock price has reached overpriced or the stock price is too high in the capital market so that it will reverse and the price will fall. Use the price earning ratio to measure stock prices.
Sometimes, it is not advisable to make base it on our own judgement but consulting the professionals in the field would be better.
 

astutimeliana723

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We need to sell shares when the stock price has reached overpriced or the stock price is too high in the capital market so that it will reverse and the price will fall. Use the price earning ratio to measure stock prices.
Indeed, that's the price in the market, after the price soared very high. Some time later it will turn very cheap. So, a trader must be smart in making stock of their merchandise so they don't lose money.
 

Suba

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Sometimes, it is not advisable to make base it on our own judgement but consulting the professionals in the field would be better.
For professional consultations, we need a consulting fee, but why should we not be confident in the skills we already have from university and experience, because the average student majoring in economics or business will invest in stocks.
 
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