Stock Buying And Selling Strategies – Best Time For Investors To Sell Stocks In Current Stock Market

Tue, Apr 2, 2013

Strategies On When Should You Sell Stock

The markets are setting new highs, yet most stock investors are more frustrated than ever.

Strategies On When Should Sell Stock TodayThey should have made fortunes in the last four years. Most of them, however, How To Sell Stocks In Stock Market   question is  rallies in history.

Consider this. Back in early 2009 when the current stock market rally kicked off we advised readers to understand two things:

The problem is a common mistake investors make when determining  How To Know When To Sell Stocks .

1. Stock market bubbles always go far higher and the busts fall far lower than most of us ever anticipate. As a result, most investors miss out on the big opportunities and sell at the worst possible times.

2. The Fed’s unprecedented response to the last crisis will likely fuel an unprecedented rally far greater than anyone could reasonably expect at the time.

Since then the advice turned out to be fantastically accurate. And more importantly, it has been extremely profitable.

Of course, we couldn’t see the future at the time. We just learned these lessons from history and applied them to the current market conditions.

Strategy On When Should You Sell Stock

But now with stocks setting new highs, most investors are about to make the same mistakes again. And that’s because trends show they’re going to sell too early.

Historical research from LPL Financial has found a startling trend that is reducing investors’ returns.

The firm’s share below shows the average holding period for stocks over the last 70 years:

 

The trend is obvious and has turned out to be costly. And now with the ability to buy and sell stocks in the stock market  with a few clicks of a mouse, the downtrend will likely continue well into the future.

The average holding period for stocks is in a long-term downtrend and the costs will likely grow for most investors.

However, investors wondering when they should sell a stock should take the Contrarian Approach. That’s to do the exact opposite of what most investors are doing right now.

As a result, we recommend having a defined strategy of when to sell a stock for profit to get better money  in place before they even when should you buy and  sell a stock.

Simply put, making and following a selling strategy of a 25% trailing stop-loss will keep you in the uptrends as long as they’re going up and protect you from making big mistakes. Those mistakes include taking any significant losses and missing out on the really big gains to be had by selling too early.

Remember, in a market rally the Fed is committed to keeping going as long as possible despite the long-term consequences, holding on throughout the uptrend can and will be extremely profitable.

Good investing,

 

Andrew Mickey
Executive Editor, Contrarian Insights

Join Now

The Group of Big Investors in United States.

Your Email

what will the price of gold be in 2015

Like This?

Share This:

Facebook Twitter Share on Google+ Digg Reddit LinkedIn Pinterest StumbleUpon

Recent Post

How to Buy Commodity Stocks Online 2015 - Learn here it’s Safe to Investment in Commodity Market

The how to invest in commodities stock 2015 can correct any fluctuations that investors may have felt recently in their fortunes. The beginning of the year was on a shaky note with the direction of profits not very clear. However, with the months wearing on, the commodities market is once..... Read More...

Is Gold and Silver a Good Investment in 2015? Gold Coins Investment Best Idea for a Great Return

The is investing in gold a good idea right now is the hot conversation for small and big time investors alike. With the crash in real estate markets and the continued disfavor of bonds, gold is the only option which is fast emerging as the fail safe investment. Moreover, gold..... Read More...

Top 10 Best Stocks To Invest In Right Now in 2015, Learn Here How to Buy Stock Now

The top ten best stocks to invest in 2015 can help investors consolidate gains this year with a great margin. These are the stocks one’s would prefer to buy and hold onto for a long time. There are more winners here than losers which sped way past the rest..... Read More...

Best Investment Strategy for High Income Earners, Learn Here Investment Strategies for Buying Stocks

The investment strategies for high income earners are a few of the best special financial tips to help in wealth management. The top 2-3 per cent of the high income earners has a challenging task in holding onto their money and investment may be the only way out to avoid..... Read More...

How to Make Money in the Stock Market with Little Money for beginners, Future Wealth

The how to make money in the stock market with little money is a sure fire way to get out a less than perfect existence. It is a means other catapult in to luxury almost overnight as has been shown by many an investor in all times. Investing in the..... Read More...