When is the right time to sell your stocks? That has always been a common question among first time investors.
To determine the right time, you should first make a research on the different factors affecting the stability of your stock value. Factors such as the replacement of leaders, merging or takeover of or by another corporation, or when the industry involved is suffering, are the more significant ones. A company with profits going downhill could cause a value of the stocks to drop, but more often, it is only temporary, and could rise again. Nevertheless, at the same time, it should always be taken into account to consult your financial adviser before deciding.
After you have determined all the contributing factors affecting your stock value, you should then check if you have achieved your financial goals. As once they are achieved, you could then proceed to sell your stocks and keep your funds in a safer environment such as a savings account in a bank.
Another factor that can help you determine when to sell is when your company share that has no chance of revival begins its dive. It would be a smart time to sell it before the actual loss. Of course you should always make proper examinations before doing so. The other way is also applied. If your stocks increase exponentially, it may also be a good time to sell, as this could be a one-time chance only, before it reverts to its original value.