The decision to buy a stock is a lot easier than knowing when is the best time to sell it.
This is true especially when you talk to a stockbroker.
They will never hesitate to tell you to buy a stock, but when it comes time for you to think about selling it, they are never too sure how to answer that.
What your stockbroker would generally tell you is, "Not too sure if it is a good idea to sell now.
I think the stock will go up a lot higher in a week or two" or "Just wait a little longer because you will make a bigger profit.
" Here, I will give a few pointers on when to sell stocks: - The problem with a lot of beginners is that they do not know when to cut their losses.
They continue to hold on to the stock because maybe someday it will break-even.
Let's say the stock is down 50% of it's initial price when you first bought it.
Now, it would need to go up 100% in order for you to break-even.
That is very unlikely to happen.
Get out before it is too late.
- You should sell when the stock has been stagnant for months.
You are not making any money if it is getting no where.
It is your money so you can look for other choices in the market that can help you profit.
- Do not wait for the "peak" because you can never predict how the stock will perform later on.
Just because you are not losing money does not mean you should keep it.
This is a common mistake, and a lot of people regret selling early.
It is always better to sell early than to get out too late.
Never look back about why you didn't stay in longer.
Move on to the next trade.