Know when to Buy and Sell Stocks

Deciding to invest in stocks is one of the most fun and rewarding financial activities you can do. Finding stocks to buy can be easy if you’re picking your favorite brands and companies, but knowing when to sell and when to buy stocks at the best times isn’t as straightforward as it may seem.

Reading wealth management firms opinions by actual customers about this topic, learning which stocks to pick, finding out when to sell them for a profit and how to do so can all be discovered on platforms such as Reviews Bird. The stock’s fluctuations, trends, and near-instant changes can create an environment fraught with stress, but if you stick by the reasons and insights as shared by other people who’ve used wealth management firms and brokers in the past, you will have a better understanding of how to successfully navigate the stock market.

As you may already know, there are right and wrong times to buy and sell stocks. There aren’t right or wrong stocks to buy – as every company listed on the stock market can perform well on a given time and in a certain set of parameters. Knowing when to buy and sell stocks takes time to figure out, so it is best to learn from an experienced broker before you attempt to do so yourself.

There are 5 main motivators for buying and selling stocks.

  1. You may have bought a stock for a particular reason and you might want to sell your stocks now as those reasons no longer apply.
  2. The company is being merged with another one and that stock will become revalued.
  3. You have invested your savings money into stocks but now you need the cash for something so you need to sell your stocks.
  4. Your investment goals have changed and the stocks you are invested in don’t enable your wealth to grow in the direction or speed in which you need. By selling those stocks, you will free up that investment to allow you to buy stocks aligned with your changing needs.
  5. You may sell your stocks in one company because you have spotted a better investment opportunity in other stocks and other companies.

The question asked most by prospective investors is when not to sell stocks. When investing in companies through stocks, it is important to not make such decisions on stock price changes alone. As we have mentioned, stock prices fluctuate daily and some stock prices might rise and fall a number of times each day. This doesn’t mean that the company you’re investing in is not stable. Stocks prices will always increase and decrease, but holding a stock over a long-term period will probably see your investment actually grow. It is a mistake to sell a stock for the primary reason that the stock price drops.

If you’re investing in stocks to lower your taxable amount, it isn’t the best principle to sell stocks to reduce your taxable amount. They call this tax loss harvesting. It can work in your favor under rare situations, but it is best for a wealth management expert to guide you on this. You can save money on taxes by investing in the stock market and you can also generate growth. It is a win-win for all concerned.