What is the ultimate secret of stock trading?
All you need to know is When should i exit the stock.
Stock market should never be gambled. If you have time and money, it does not mean you can make millions. It requires skill, patience, understanding, emotional control, proper planning, knowledge, risk management, analytic, etc.
Its not that hard to earn money in the stocks, just that its very easy to lose money. All you need to know is when to exit a stock.
Exit a stock if
- The quarterly result was not good. Reenter at support or fair price.
- The sector outlook changes. Reenter after the stock bottoms out. It happens after 1–2 years.
- Management is not positive in way forward. Reenter after the stock bottoms out.
- Debt of the company increases and revenue is falling.
- Stock is way above its fair price Fundamentally.
- Stock is way above its support price Technically.
- You have found a good stock technically or Fundamentally, you can switch.
You should not exit because
- You have earned 30% from it
- You have lost 20% from it
- Some Fund Manager has sold it
- The stock is not moving for a month
What are your strategies to exit a stock? You can comment below and also What is the ultimate secret of stock trading?