Exit Strategy in long term stock investment

#1
hi,
I am new in stock market investing.
I am intersested in long term investment.
My question is " what is the best exit strategy for long term stock investment"?

Thanks in advance.
 

PUCHU_2500

Well-Known Member
#2
hi,
I am new in stock market investing.
I am intersested in long term investment.
My question is " what is the best exit strategy for long term stock investment"?

Thanks in advance.
When Thelawala/Ricksawala and general people(who never invested in share market) start discussing about investment and share market.......
 
#3
  1. Know your objective before timing your exit: You may think that the only objective of everyone who puts money in the financial market is to make a profit.

  2. Take time in deciding your holding period of your long term stock investment.

  3. Check the history and valuation of your investment and if you feel selling a part of it will be a good idea and help you balance your overall portfolio, selling should be considered.

  4. Reviewing your portfolio will reveal secrets, this will help you find the underperforming assets and you can then chalk out an exit strategy for them.
 
#4
There are only two ways you can exit a trade that is : stop loss or take profit.
Stop losses are orders you place with your broker to sell/buy stocks automatically at a certain price. Once this price is achieved the stop loss is converted into market order. The purpose is to limit the loss on an open position.
Take profit is an order to the broker informing them to close your position when price reaches a specified price level in profits.
While planning an exit strategy, keep in mind how long you are planning to trade, how much risk you can undertake and what do you want to achieve with the trades you make.
 

Similar threads