Buying and selling stocks can be both exciting and stressful. On the one hand, acquiring what you hope is a great stock that will product profits for you can get your adrenaline pumping. On the other hand, knowing when the best time to sell that stock can be quite stressful. Let’s look at why selling stocks can be stressful and why it may be best the best move to sell anyway.
Weighing the Risks
The most difficult decision to make when you have stocks is when to sell it. You need to try to determine what is the best time to sell and whether or not it is more profitable to hold onto it or to sell it. There are two things to consider when you’re thinking about selling your stock. If the stock is on the rise, are you selling it too soon? If it’s going down, are you comfortable with your decision to cut your losses?
Peaking Highs and Lows
It is exciting when you own stock that is going up, but difficult to determine when it will peak. There’s really no set method for determining how high a stock will go before peaking, so only you can determine whether or not you’re comfortable with selling at any given price point. Once you decide to sell your stock, don’t look back. Take your profits and move on.
If your stock price is going down and you sell it, how will you feel if it begins to rise again after you sell it? If you decided to keep it and it continued to decline in price, are you comfortable with the prospect of losing more money? You have to take both of these into consideration when you deciding whether or not to sell or hold.
You have to weigh all of the risks and possibilities when deciding whether it’s time to sell your stock. The best choice will come down to being comfortable with what happens after you make your decision.