It’s Not What Stocks (Shares) You Buy … It’s When You Sell That Counts

It’s Not What Stocks (Shares) You Buy … It’s When You Sell That Counts is the name of a famous book which tells us when to sell our shares. The book is written by Donald L. Cassidy and is considered a classical book about overcoming the critical barrier to stock market success. The writer states: “There is no difference between a long-term investor in the classical sense or a short-term trader when it comes to stock market success – anyone can profit and stay in the game, if he knows how to cash in – to sell (shares) when the time is right.

You may have observed that buying shares are easy – you should have money and you decide to buy, and then you buy either yourself through your online trading account or through your broker. However, when it comes to selling, people hesitate a lot and many times when they decide to sell, the prices would have come down. No one can sell at the peak of a share’s price as no one knows the peak! As such, one has to sell when one is making a profit. Sometimes, even selling at a loss becomes necessary as chances of prices appreciating in some shares may be very negligible.

In a stock market which is just touching the sky like the Indian Stock Market of now-a-days, one should be very careful. Some of the signals which indicate that the stock market is on fire and moving so fast that it may not last long are:

#Quietly confiding investment successes to others

#Spending increased time on market study

#Openly bragging about winners or a hot streak

#Celebrating in unaccustomed ways

#Counting the chips

#Adding more money

#Playing the new issue game

All the above signals should be taken with a pinch of salt. A astute investor or trader in shares watch these signals to sell their shares and cash in to capture their profits. On the other hand, novice investors, just watch the stock market game and are last to sell when the market starts its downfall.

More details about each point in the nest few days.

In case, you are interested in the management of your money and wealth, ways to save and invest, you are most welcome to visit this blog periodically. We believe in telling the truth and we don’t have anything to gain except your goodwill. Please feel free to comment – good or bad – and, please let us know if you want our comments on a particular point.