Shares/Stock How to Decide Whether to Sell or Hold Stocks

Mika

VIP Contributor
When you invest in the stock market, you don’t invest it for your entire life, you plan in selling sometime later. So, what factors do you consider while deciding on whether to sell your stocks for further hold them? Let’s imagine a situation where you made a loss and you don’t know whether you should sell or hold. When stock values drop by 20 percent, deciding whether to sell or continue holding involves several factors. First, consider the company's reputation and market performance. If it's from a reputable company with a sustainable business model, holding may be wise. Profits often come from long-term stock holding. However, if the stocks are from less reliable companies and losses are accumulating, selling might be the prudent choice.
 

Suba

Moderator
Staff member
As a stocks investor, of course you already have a target and determine when is the right time to sell stocks. Of course you will choose when stock prices are high so that you can take profit by selling some or all of the stocks you own. But when the price crashes you have to determine CutLoss, so you can prevent bigger losses. So as an investor (not a trader) you can cut losses when there are negative changes in company fundamentals and performance.

You can decide the right time to hold stocks, such as the decline in stock prices is only temporary. The stock value has not yet reached the cut loss or take profit target, the issuer's fundamentals and performance are very good so it would be profitable to hold the stock longer or in the long term.
 

Jasmine

VIP Contributor
For investors, selling your assets or continuing to hold portfolios is one of the most important decision to make. If you do not make a wise decision, you are likely to make a huge loss. The decision to hold or sell off your assets should mostly depend on market performance and your investment goals. Panic selling is one of the most common reasons why a lot of people are making losses in the stock market. If you choose assets based on emotions or faulty judgement you will be making losses.
 

SHAHID123

Member
I spend my years in Pakistan Stock Exchange trading. I got overall significant profit but I lose money in some stocks, those were not reputable, I purchased and after some time it started going down, the mistake I made their was to hold it rather sell and comes out in little loss, but due to holding, it touches its bottom and remain there for years. We need to see the company to which the stock belong as if I purchased stock of Abbot or gsk then there is very less chance that it will break, if it remain on lower price then nothing wrong will happen because I will receive regular dividend from it.
 

alexlama

New member
When facing this decision, it's crucial to consider various factors. Firstly, assess the company's reputation and market performance. If it's a reputable company with a sustainable business model, holding onto the stocks may be a wise decision. Profits often come from long-term investments. However, if the stocks are from less reliable companies and losses are accumulating, selling might be the prudent choice. Ultimately, it's essential to analyze the market conditions, company performance, and your own financial goals before making a decision. If you're interested in learning more about stock trading strategies, you might want to explore continuation candlestick patterns at https://fx2funding.cоm/blog/top-4-continuation-candlestick-patterns/. They can provide valuable insights into market trends and potential price movements.
 
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