It’s hard to know when to sell. There are no golden rules. But there are a few golden questions: Do I need the money for something else? Do I still believe in the company and its future? Has something significant changed (like a change in leadership or merger) with the company since I bought the shares? Was I wrong in the first place and it’s time to cut my losses?
Yes, it’s hard to keep on top of shares. But if you set a goal when you first make a purchase, it will be easier to let go. Try this mantra: “if the price rises by more than 20% from the day I bought, then I will sell.” Remember, it’s only natural to worry – wishing you sold a share sooner or held onto it longer. But be confident that the decision is right for you. Accept the wins with the losses.
Tips and tricks
Prices will go up and down every day, so try to remember the reasons you backed the company in the first place.