Market Lesson – When to sell stocks

Many investors purchase stocks but become stuck-holders after their initial purchase. The easiest thing for any investor to do is hit the sell button. It’s very easy to buy stocks, but when should you sell. That is one of the biggest questions asked by many investors. 

The right time to sell stocks would be no more than 7 to 9 percent from the initial buy point. If a stock pulls back 8 to 10 percent from the initial buy point would mean that the stock was purchased at the wrong time.

After the purchase of a stock an investor should always take profits after the stock moves up 20 to 50 percent, and many take profits at 20 percent in which is just as good, as well as safe. Selling shares after a 20 to 50 percent rise in price would guarantee profits and limit losses. The whole idea of purchasing stocks is to make money, in other words make money take money. 

By Marlin Rolle