What is the Right Time to Sell the Stocks?

Trading is an act of buying and selling. Share trading involves the buying and selling of stocks, equity funds, bonds, materials, currency, etc. Every moment, transactions take place in the market from a small amount to few crores of rupees. Marketers wish to gain as much from each sale they make.A trader should know when to buy or sell his/her stocks to maximize the earning and minimize the losses he/she may incur during the transaction period.

Every transaction will not bring you profit. People sometimes do face heavy losses. If we talk about share trading, traders need to follow the trend and history of the companies where they want to invest. When the price of stocks shows a dramatic movement, traders fail to understand the pattern of the change in the prices of shares.Some throw up the stock earlier than they should, and some hold back for a longer time in anticipation of gaining a more significant profit.

Sometimes selling is the tougher than purchasing.Often wrong buying may end up selling stocks in loss. Below are a few tips which you can help you in determining the right time to sell your shares.

• Before purchasing, a good research about the company where you want to invest, can help you a lot in while selling.
• Be realistic about the profit. Under unrealistic wish of profit, sometimes we hold the stock for long time unnecessarily.
• Continuous research can give you a fair and transparent idea about the movement of share price in the market and help in buying or selling process
• Risk should be considered in a deal.
• Stay calm and relaxed. Wait for the current price to hit your target price, and then perform the selling action. For short term trading , dividend declaration can be a good period to sell the stocks for higher profit.
• Sell the stocks beyond average profit equity ( P/E) ratio ,at-least last 5 years or longer should be considered.

To conclude Selling can get easier by having gaining proper knowledge of the company we are investing in. Researching about the sector and the organisation, following the change in price graph over the year to estimate a correct price range to sell up the stocks, can help in avoiding losses to larger extent.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.