When to Sell?

Knowing when to sell is important!

Knowing what to buy, when to buy and how to buy are as important as when to sell.

I would like to share with you some of the factors as listed below of when you should sell your stocks:

1) Over-valued (Sell it when its over-valued especially when you know for sure that their earnings are unable to keep up with their share price. A high PE ratio is one of the good indicator telling you this)

2) Mistake (Admit that if you made a mistake. For example you might thought that company A is the market leader however, after more analysis, you realise that the actual market leader is company B)
3) Max 8 (If you would like only 8 stocks to be in your portfolio, then when you spot a company which is way under-valued, you should sell away the one that gives you the least return)

4) Story no longer hold true (Some company failed to be innovative and over time become irrelevant, for example Nokia, kodak etc)

5) Over-heated (You will know it when everyone you know or even stranger i.e hairdresser, cleaners etc start to talk and speculate in stocks investment.)