Although many focus mainly on which stock to buy and proceed with analyzing the company and their current position in the market, it is just as more important, if not more, to focus on the right timing to sell. This will indicate the actual returns made on the stock, rather than the unrealized. The following are reasons for selling your stock:
When an M&A is taking place. This can indicate the restructuring of company, change in management, change in strategy in result changing the nature of the company.
Rebalancing your portfolio Investments in your current portfolio are not reaching the expected return (due to poorly performing stocks that outweigh the positive return stocks). In such a case, it may be ideal to reevaluate the allocation of the portfolio and decide to sell the bad investments.
Once realized that the investment was a mistake and that your position on the stock is worsening. Depending on the size of the loss, if you are able to take it, then sell. It is better to have a small loss then all your invested amount.
A better investment opportunity
If you find a better investment opportunity with higher returns and the same amount of risk you are willing to take, then it is time to sell your stock.
One thing to avoid : selling when panicked.
Markets fluctuate but they almost always go up. Therefore, do not sell when the market goes down.
This was not written by Thndr and this is not investment advice, you should do your own research before making investment decisions.