4 Reason to Sell Stocks Now

People nowadays sell their stock for lots of reasons. some don’t have any reason to sell it. if you’re the one, please stop that. some people sell the stock at certain trends, lines, and targeted prices.  this type of misbehaving activity can lead you to lose money unnecessarily.

so those who sell the stock expect these 4 reasons. there is no guaranteed, that they are investing their money. if you’re the person who sells stock without these 4 reasons. then I’m 100% sure you are one of the speculators or gamblers in the stock market. you never become rich and make a big junk amount of money in the market. so let’s take a look what are the 4 reasons to sell the stock.

if you invest your money in stocks and have a better investment than your current investment. then it’s a perfect reason you can sell your stock and buy that wonderful business stock than current stock.

but one thing. this opportunity doesn’t happen all the time in the stock market.

it’s rare, once happens then sell your business stock and buy wonderful business stocks rather than the current one.

if you didn’t understand it, let me explain with an example. before 2 years, you have bought stock worth 10,000 dollars. after two years now that share of stocks is worth 50,000 dollars.

during the research of your passionate companies. you have found one wonderful best company than the current company. so you have a better opportunity than the current investment. in these types of situations. you can sell the stocks.

Moreover, let’s say, you invested in Apple stocks for five years and you

know that apple stock is over priced and it is above intrinsic value. so now you  can sell the stock. because it is over priced and its going to down more.

most people don’t know what is intrinsic value. if you don’t know what its? then go and type intrinsic value on the search button on our website. I wrote an article about intrinsic value and how to calculate that.

if you understand how the intrinsic value is calculated then you will know clearly. when the market is overpriced and when the market is below its value.

so finally when your bought stock is over priced. its time to sell the stocks.

if you sell your invested share of stocks when its above intrinsic value (overpriced). then your selling your shares at the right time.

if your investor needs urgent money in your critical situation in your life. then you can sell your stock. most people sell their shares unnecessarily. so you need to understand that when you sell the share without a strong reason. then you’re not investing, you’re making the chance to lose your money.

some people misunderstand this part. so I can give you an example. let’s say you have invested your money in particular company stocks. and you need money to run your family for next month.

if you sell your shares for silly reason. then you’re going to lose your entire investment money in one day.  go out work for your family save and invest. you can only able to become rich in the long run. you cannot become rich overnight by investing.

clearly, instead of you need money for family expense, you need money for your mother or spouse or your operation. you don’t have any money in your hand expect for family expense. so in these types of critical situation you can sell your needed share and take your money out of investment “no problem”.

so I now think hope you understand. how strong reason you need to sell your share of stocks.

some of the peoples who good at stock buying. they are not good at selling Shares of stocks. so if your the person who bought the company share and your bought company have problem in management or selling or growth. then  you have to sell the stocks. otherwise there is chance you will get low returns on your investment.

when you have doubt about how can I check my particular bought company  shares have a problem (or) not. you can download certain 10k report ( annual reports) of the company and check the income report, balance sheet, cash flow statement and share holders letters.

then you will automatically know you have problem or not. when you confirmed that you have problem in the management of the company. then you need to sell you share of stocks.

finally if you sell your shares without these any strong reason. then your going to loss money and your also breaking the warren buffet rules. warren never sell the stock without this reason. clearly  if you have anymore doubt then feel free to comment your suggestion (or) contact us.