When to sell stocks? How can I determine the optimum time to sel

My approach can be different from others. For me, it's always a custom approach to every stock. I never have a standard algorithm for every stock in my portfolio. Because stocks have different volatilities and trading histories, company sizes can differ, and my required returns can also vary from equity to equity, company industry, and many other things. That's why it's better to have a unique, custom approach to every stock. 

 

But there are some common things that you should pay attention to if you consider selling your stocks. I usually start my fundamental analysis and see how data has changed. If I see dramatic, negative change (in a financial statement), I can sell my equity. Below are the recommendations for mid-term or long-term investors. If you are a short-term trader, you can use my iOS app, "Stock Target Price," go to the "buy signal" screen, input your stock ticker and see the right time to buy or sell your selected stock. My app also can calculate stock target price and generate investment ideas. Keep reading this post if you are a mid-term or long-term trader and want to know what things you should examine before selling your stock. 

 

I pay attention to (but not limited to):

 

1) financial figures are they getting worse than analysts' estimates and are they getting worse from quarter to quarter.

 

2) Company changed its business model.

 

3) Company's management structure changed.

 

4) Company's financial report shows huge negative numbers or a massive decrease from the previous report.

 

4) Equity was delisted or transferred to another trade category.

 

5) Equity became 3–4 times more volatile than a year earlier. 

 

6) Company lost its market share.

 

7) Changes in the economic moat. 

 

8) Stock target price has changed and declined dramatically. 

 

I hope my article was helpful. Please keep in mind that it is not a good idea to have one strategy for every stock, and please consider every situation from a different angle.

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