Step 6: Know when to sell off your stocks
Always remember what expert and amateur investors both understand: There is no “perfect” time to buy or sell stocks, especially since you’re investing for the long term. Generally, we believe you shouldn’t trade on a daily or even monthly basis.
Here are some reasons that might make you consider selling off your shares:
- You need cash quickly for a serious financial need or you would like to reallocate your investment to other assets
- You don’t believe that there will be reasonable returns on your investment based on your expectations of the company’s future earnings
- It could be that you’ve already hit your financial target and you feel that there isn’t much opportunity to make further returns
- Or the reasons that made you initially purchase the shares have changed and there are no compelling reasons to hold on to the shares