The buying and disposing of stocks are of equal importance
3. Off-loading weak stocks
Off-loading weak stocksin your portfolio, in a systematic way,
will help in minimizing risks and maximizing profits, and will
ensure that you enjoy bull parties without falling into bear
traps.
4.
Gauging when to sell stocks
5. Gauging when to sell stocks
Benchmark stock returns to those of an index
Any stocks that havegiven lesser returns than the indexare the
ones that should be sold first
The underlying premise for the sale of such stocks is that they
areblocking up your precious capital , which if invested elsewhere,
in performers, could have delivered better returns
6. Gauging when to sell stocks
Set price targets and trailing stops
Having apre-determined price targetand selling the stock once
the target is a very effective technique
It may also help toidentify stocksin your portfolio that
arefinancing your lossesin other counter
7. Gauging when to sell stocks
Keep a check on fundamentals
Even in a bull market there are stocks or sectors whose
fundamentals have changed or have the potential to change due to
reasons likeprofitability, competition , etc. This could impact the
decision to sell
It is always a good practice to keep acheck on your
fundamentals
8.
Remember:Sell the weakest and hold on tothe strongest !