Investing in stocks is like a game of chess, and that’s part of the fun. However, you’ll always want to have a good idea of when to get in and when to get out, so you don’t get burned. In general, you don’t want to sell your shares just because the price is going up or down. There are certain cases where your desire to place some sell orders is fully justified. While there are no set rules, here are some tips for when to sell and when not to sell.
When setting stock selling goals, it’s important to consider a few key factors. You must have a clear understanding of why you are selling the shares in the first place. This will help you determine the right time to sell and ensure that you are making a decision that is in line with your overall investment strategy.
Next, you should consider current market conditions and how they might affect the value of your shares. This will help you determine the best price to sell your shares at and ensure that you maximize your return on investment.
It’s also important to consider your personal financial situation and how the sale of your stock will affect your overall financial health. This will help you determine how much of your portfolio you want to sell and ensure that you are making decisions that are in line with your long-term financial goals.
Finally, it is important to review your selling goals regularly and adjust as needed. This will help you stay on track and ensure that you are getting the most out of your investment decisions.
How do I manage my wallet? I manage my portfolio by following a set of rules that I consider before making a decision to buy or sell a particular stock. I will sell the shares when there is a capital gain. I have certain sales stages that are crucial to me when I decide to buy stocks, and others when I decide to sell stocks.
First: selling when a certain profit goal is reached I always set a profit margin for each share and company separately. When I invest EGP 10,000in a specific share, I set a 5% profit target. When the profit from the share is EGP 500+, I start selling immediately.
Second: selling in stages When I start securing the profits of the share, I do not sell all my shares at once, but rather sell a portion and hold the other portion, as the profit may increase from 5% and be 8% or 10%, and also if I sell to avoid the loss.
Third: selling for a better opportunity In the event that the share brought me the appropriate profit of 5%, which is my goal, and it remained at its price for a long time, I sell it to invest in another share that achieves a new goal or a new profit margin for me.
Fourth: sell to stop loss If I buy a share and find that the price is falling and the news is not promising, I sell, but at intervals as I explained earlier.
In the end, make your decision based on reason and not based on emotion, and remember that “patience is one of the most important foundations of investment.”
This was not written by Thndr and this is not investment advice, you should do your own research before making investment decisions.