When to Sell Your Stocks

When to Sell Your Stocks

Woman selling her stocks on HALO Technologies

Whether you’ve just broken into the world of stock trading and investing, or you’ve been building your portfolio for a long period of time, it can be difficult to decide when to sell some of your stock investments.

There are a few different reasons why you may decide to sell your stock. Using your HALO Technologies stock trader app, you can easily make the move to buy and sell as you please – however, it may not be that easy to decide what to actually do.

To help you make these decisions and maintain a strong portfolio, here are some instances where you should consider selling rather than holding:

Your stock is performing poorly, consistently

All stocks experience rises and falls throughout the year, even if just by a few dollars here and there. Some amount of loss is normal and expected for any company’s stock.

However, if you are consistently experiencing loss, you may want to look into the stock more closely. Dig deeper into the company’s performance and financial reports to understand if they are experiencing financial loss, or if there are other things contributing to a decrease in stock price.

Ultimately, if you are consistently losing money in your investment, it’s likely best to sell. While the stock may recover in the future, there’s also a chance you’re avoiding a dramatic loss – it’s best to make the decision early before it significantly impacts your investments.

You want to grow other investments

Having a diverse portfolio is key to maintaining strong investments overall. While you’re holding on to various stock investments, you’ll want to check in regularly to see how they are performing and identify other stocks you may want to invest in in the future.

If you have a particular stock or two you believe to be great investments, but don’t quite have the money to invest, consider selling other stocks in favor of your new investments. If you’re noticing some aren’t performing well, or just not giving you the return you anticipated, feel free to cut your losses and move on to bigger and better investments.

Your stock is experiencing uncharacteristically high growth

In early 2020, those who owned GameStop stock woke up to a surprise when the stock price hit over $300 in a matter of hours.

This unexpected growth shocked stockholders and shook up the market for a few days; but soon after, the stock returned to its normal price.

While something this dramatic is unlikely to happen if your stock experiences significant growth – especially in a short amount of time – you should consider selling. There’s a chance it will not reach that height again, and you’re better off reaping the benefits rather than staying around and risking a big loss.

Overall, there’s no distinct method that will always work when it comes to buying and selling stocks. However, if you are monitoring your stocks’ performance, you’re likely to notice these situations from time to time. Here, you can make an informed decision on what to do with your stocks. Be sure to check in with your stock trader app on a daily basis to understand where your various investments stand, and identify opportunities to sell to protect your overall portfolio’s health.