One of the main reasons why most investors are unsuccessful in the stock market is that they don’t know when to sell or liquidate their position in stocks from their portfolio. Some of the most common factors influencing this are investor biases. These biases are often influenced by psychological factors, which can adversely affect successful investing.
This week, the topic of when to sell a stock will be explored as part of this series on what to look for while investing.
Investors generally buy stocks in the hope of making a positive return over a period. These returns may take the form of dividends and capital appreciation through share price fluctuations. There are numerous reasons and methods for identifying when to buy a stock, but investors can only realise profits once they sell the stock, assuming it does not pay dividends. Hence, learning when to sell a stock is a crucial skill that all savvy and diligent investors should strive for.
