When is the right Time to Sell a Stock?

Source

Yesterday I wrote a post about how I was finally able to sell one of my Stocks which gave me a pretty hansome return and everything seems good but at the same time I should also inform that this was only the fifth time I have ever booked any profit that too in a 2 year period. This would have been ok if the entire two year was entirely composed of Bear Market but as we know it majority of the two years was Bullish in nature.

So how would you know when to Sell?

That is indeed tricky and often related to Human psyche as well. We can see all the Indicators available to us to tarck the overbought or oversold zones but still the fact remains that you will have to sell the stock in order to book profits even though you clearly see a Stock is in its Overbought Zone.

Truth be told if Varun Beverages gave a momentum of ups and downs then I might not have sold the stock myself but since it was a clear uptrend it made my decision easier. Usually human psyche tends to hope for the best and in this case that would have been that this Stock just kept on rising but as I have said before we shouldn't get Married to a Stock and make rational decisions.

So if you ask me then I will say that Sell when something's Overbought Overbought and Buy when something's Oversold sounds simple right but trust me it's damn hard to follow.

PS: I am not a Financial Advisor and this is no Financial Advice by any means.