Stocks: Big question when to sell?

POSTED BY Krishna ON July 17, 2011 4:24 pm COMMENTS (4)

Hi all,

I have accumulated few very good shares (e.g., TCS, Tata steel, L & T) when market was down and returns are superb!. My question is, when should one book the profits?  How should be selling strategy? There is always fight between greed and fear!

Any sound smart strategy one can use and stick to it?

Thank you

Krishna

 

4 replies on this article “Stocks: Big question when to sell?”

  1. Manish Chauhan says:
    July 17, 2011 at 6:34 pm

    Krishna

    Considering you dont have much idea of how stocks work , there are two things I can recommend

    1. If you dont want to learn anything and just want spoon feeding : In this case , there wont be much help , considering you have already made good returns, my suggestions would be to liquidate your fabulous returns and not get too greedy further . Wait for the next correction now . If you do like this and catch 2-3 downsides like you did last time ,your overall returns would be good enough .

    2. If you can learn a bit and can spend time : I am personally a believer of technical analysis . learn some common technicals like support resistance and how to look at basic charts and based on a long time frame you can take decision for selling . Note that learning TA is only for taking the decision of selling in short term. Its not for long term investing . You can only use it to assist your decision of sellling .

    Manish

    Reply
    1. Krishna says:
      July 17, 2011 at 7:28 pm

      Thanks Manish for recommendations.

      I consider your both points and more inclined towards your second
      point of TA. Could you please direct me to good reference where
      I can learn more about it?

      As always, your articles help to know how things work! excellent
      work. thanks!

      Regards,
      Krishna

      Reply
      1. Manish Chauhan says:
        July 18, 2011 at 1:46 pm

        Krishna

        If you want to start from basic , I have done some articles

        http://jagoinvestor.dev.diginnovators.site/2009/04/how-to-use-trendlines-to-identify.html
        http://jagoinvestor.dev.diginnovators.site/2009/04/how-to-become-better-than-average.html
        http://jagoinvestor.dev.diginnovators.site/2009/04/how-to-use-oscillators-to-buy-sell.html

        You can also read a book by Ashwini Gujral on techinical Analysis .

        Manish

        Reply
        1. Krishna says:
          July 20, 2011 at 12:01 am

          Thanks Manish, Articles are very informative.

          Regards,
          Krishna

          Reply

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