Best time to sell a stock.

#1
Hello,

I have a query. If i buy a stock which is fundamentally strong, what is the best time to sell it.

It's obvious that return expectations play a major role, but that differs from person to person.

I am keen to know which fundamental parameters should i look for to sell it.

I am not very sound in fundamental analysis but i read somewhere that as the P/E increases , its time to be cautious and look for selling opportunities.

Need inputs from seniors .
 

Einstein

Well-Known Member
#2
A fundamentally strong company is one which earns exceptionally good profits on its networth. and I am sure its very hard for new investors to figure companies like this. Those who are not able to spend sometime on learning newthings and should invest on index based funds which will do just fine in long term.

one more thing I would like to add is that P/E ratio is not a valid valuation tool. Do not look at it as an indicator to tell is the company is cheap or expensive.
 
#3
Sir , then according to you which valuation tool(s) should be used to know if a company is cheap/expensive.

And sir , as per my query i am more concerned to know when to sell a stock.Most of the time it happens that after i sell a stock , even then the stock moves upwards.
 

Einstein

Well-Known Member
#4
Its Einstein, not sir. I havn't earned this title yet :p

Stock investment is more of a business valuation rather then stock valuation. what I mean to say is cheap/expensive does not mean you have to sell. I just this for BUYING not Selling. I have seen expensive stocks(of good companies) doing ridiculously good. Buffett once sold PetroChina when it was no more a cheap stock. after he sold his stake in petrochina it went up 50%. I can say the same about Asian paints and Page Industries. even these stocks are expensive but the underlying business is just too good to digest.

Always look at the business first.
 
#5
ya i definitely agree with you i tried to make a position in asian paints ,axis bank and la opala but a second thought that they are not defining their proper valuation at their current market price so i didnt made position in that
 
#6
Hello,

I have a query. If i buy a stock which is fundamentally strong, what is the best time to sell it.

It's obvious that return expectations play a major role, but that differs from person to person.

I am keen to know which fundamental parameters should i look for to sell it.

I am not very sound in fundamental analysis but i read somewhere that as the P/E increases , its time to be cautious and look for selling opportunities.

Need inputs from seniors .
Gradual decline in quarterly EPS .( earnings per share )

Earnings per share tells a lot about .

mixter
 

jxcess

Active Member
#7
Hello,

I have a query. If i buy a stock which is fundamentally strong, what is the best time to sell it.

It's obvious that return expectations play a major role, but that differs from person to person.

I am keen to know which fundamental parameters should i look for to sell it.

I am not very sound in fundamental analysis but i read somewhere that as the P/E increases , its time to be cautious and look for selling opportunities.

Need inputs from seniors .
I am not an expert but I think the best time to sell a stock is when it's returns are atleast higher than bank fd rates. So let's say that bank fd rates are 9% then you should atleast try to hold on to the stock till it reaches 10% (CAGR). This is just my opinion.
 

umeshmandal

Well-Known Member
#8
I am not an expert but I think the best time to sell a stock is when it's returns are atleast higher than bank fd rates. So let's say that bank fd rates are 9% then you should atleast try to hold on to the stock till it reaches 10% (CAGR). This is just my opinion.
Then where do you invest the sale proceeds? In some other stock? Then why exit a profit giving stock? Fact is if you can beat the FD returns by 1:2 dont ever sell a stock that does so !
Was listening to Basant Maheshwari on TV, he and his Subscribers hold Page from below Rs.500.00 and it did a high of 12000+ a few days back...... you know what , BM was still advocating to add Page at 10000/+ a few weeks back !
Good stocks are never sold unless you need the money !
 

jxcess

Active Member
#9
Then where do you invest the sale proceeds? In some other stock? Then why exit a profit giving stock? Fact is if you can beat the FD returns by 1:2 dont ever sell a stock that does so !
Was listening to Basant Maheshwari on TV, he and his Subscribers hold Page from below Rs.500.00 and it did a high of 12000+ a few days back...... you know what , BM was still advocating to add Page at 10000/+ a few weeks back !
Good stocks are never sold unless you need the money !
thanks for your advice. I looked at page industries and was really amazed with its success. I also happened to come across another stock similar to page which is sudar. what do you think of it?
 

rvm123

Active Member
#10
Best time to sell a stock:

You set a target either in % age or price at which it is to be sold. Say, for example, if u buy a share @ Rs.100/- and expect a 10% return or to sell at Rs.110/-, wait for the target to come. Once when the quote has come to your required level, you sell the share and book your profit.

Once sold, you dont review whether you have sold at the maximum price or not. You simply forget about the transaction.

"Buying at the Minimum most price" and "Selling at the maximum most price" is not possible all times.
 

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