As everybody knows when to buy shares, knowing when to sell them is also crucial. Here are some basic factors to dispose off
your shares:-
- If you think that your portfolio has grown to the level beyond comfort zone, you can sell some of your holdings.
- If you feel that thre is a chance to earn higher returns from another stocks, you can consider disposing off the underperformed stocks. To recover some of the lost money and possibly make more, you should get rid of the underachievers and seize the opportunities.
- When your stocks price skyrocket by more than 30% in a few weeks due to market speculation, it would be ideal sell your stocks and look for other opportunties. And if you are sure about company's prospects, you buy the same later at a lower price.
- You can learn from the past mistakes and should know the 'stop-loss' technique. You should intervene in time and sell your stocks.
- You would have bought the company's shares as you were convinced about its growth prospects, competitive advantage, superior product mix and its upcoming projects. Same way, you will have to rethink when situation takes an u-turn like fierce new competitor who offers good quality products at low price in the market, exit of key personnel from the company etc. and should immediaely dispose off the stocks.