Know when it is time to sell your financial market trading stock

“There is a time for entering a trade and whether we like it or not, there is a time to exit a trade.” These were the opening words of one of the top financial advisors at Wilkins Finance at a recent conference. In order to be a successful trader, one needs to cut a fine line between the want and the need to enter and exit a trade. The most important thing to remember is to keep your emotions out of the strategy when planning to buy or sell stock on the financial market. But when is the right time to actually sell your financial trading stock without losing all your capital?

When your brokerage firm does not deliver on promises made

Whether a trader likes it or not, many brokerage firms promise their clients the entire world to get them trading with eagerness. However, when push comes to shove and they do not deliver on their promises, you need to sell your stock as promises broken is capital lost.

When huge numbers of traders lose interest in the stock

There is no need to jump at every indication of another trader selling off the same stock you are trading with. But you need to be vigilant when a huge number of stock trading experts start selling their stock. Before you sell off your own stock, however, make sure that there is a valid reason for the stock sold off.

When the stock takes up an unreasonable price

Should the price of a certain stock rise so high that it comes as a shock to even the greatest trading expert, you should consider selling your stock to get maximum profit before the market drops and you lose capital you could have otherwise gained.

When the reason for buying stock keeps you up at night

Yes, financial market trading comes at a risk. But when that risk becomes too much to bear, it is better to cut your losses. If you lose sleep and keep thinking about the reasons you have bought a certain stock, it will cause you to make irrational decisions when the time comes to actually sell your stock. Although you can keep your stock in the game in the hope of getting more profit, your risk tolerance already tells you that you should sell.

When you need your long-term trade profit immediately

You have bought some financial stock at a low price. The market is just rising and looks great for a good few months. You decide to keep your stock in the game for a long-term trading option. After two months, your child will go to college and you know you’ll need the funds to start paying for this. Should this be the case, you need to sell your stock and keep the funds for college payments. 

When the reason you bought the stock no longer exists

If you analyse the financial market and find that it is a great time to buy a certain stock, you need you that your findings can change at any point in time. Should your analysis of the market no longer ring true, it is better to sell your stock to avoid getting lost in the masses.

When you cannot afford your own living expenses anymore

The cost of living is on the rise and will keep rising in future. Where you perhaps once had $100 000 to trade with, you now have a family. Expenses are higher than what they used to be and you can now only afford to have $10 000 in stocks. Do not weather yourself out to get that extra $90 000. Rather sell off the stock you need in order to get through every month. There are better times ahead as your stock should still make you a substantial amount of profit at the end of the day.

Now that you know when the right times are for selling off your stock, you can rest assured that you would still be able to walk away with a profit, despite the way the market has changed since you entered in the trade.