Selling shares
You usually don’t keep shares forever, whether you trade for the short or long term. But what is the best time to sell your shares ? Unfortunately, it often only becomes clear in retrospect what the perfect moment was. But of course there are some tricks to determine a good time to sell your shares.
Sell stocks when the price is high
It may seem obvious, but ideally you buy shares when the price is low and sell them when the price is high. If you know how to profit optimally from these price differences, you can achieve a good return, better than the savings interest at your bank.
Selling shares: follow the news
You can imagine that when a news site reports that a company is doing badly, the shares of this company will quickly become less valuable. And the same applies the other way around: when there is positive news, it can be worthwhile to buy shares. Therefore, keep a close eye on the news and be aware of the shares you have in your portfolio .
It may be that both negative and positive news only has an effect in the short term, and the share price changes quickly again. But in general, the rule in investing is: the greater the risk, the greater the potential return .
Other tips to determine a good time to sell
In addition to keeping an eye on the price and following the news, we have the following tips for you:
- Keep an eye on the expectations for the market in which the company operates. Is it a growing market or a shrinking one?
- What developments are happening at the company? For example, are new products being launched or is there going to be a merger? If you expect positive effects from these developments, hold on to your shares for a while.
- Check the purchase and sale of your shares . Do you see that certain shares suddenly rise without any clear reason? Then there may be a hype that you can profit from.
- Study the company’s finances . Are there many liquid assets in circulation? Is there relatively much debt? All matters that play a role in the continuity of a company. You do this by means of a fundamental analysis .
- What is the competition doing? Are there other (Asian) companies that deliver the same or a better product for a lower price?
- Unfortunately, past performance is no guarantee of future results . You may be tempted to continue investing in stocks that you know are successful, but it is not certain that the price of these stocks will continue to rise.
Perhaps the most important tip is that you need to understand what you are investing in . For example, do you know everything about the pharmaceutical industry? Then you can anticipate developments in this sector much better and respond to them.
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