When to buy & when to sell a stock that depends on right time. Time is the big player in stock business. You may buy a good stock. But you may not earn nothing from it if you bought the good stock in the bad time. Proper time and good stock can bring a suitable profit. How can you find out a suitable stock? Before go further, I request you to read the post about stock market basic knowledge.
When others are greedy, you should fear and when others are in fear, you should greedy.
By Warren Buffett
An intelligent trader always looks for better opportunity. When all are busy to buy an uptrend stock, you should sell your holding then. When all are busy to sell, you should buy at that time.
Although this is a simple strategy, we may not easily follow that strategy. There is a reason behind this. We like to follow others. When an uptrend stock is going higher, many traders are fear of losing a good trade. So, they are hurry to buy. Next day, some traders are busy to sell because of profit taking. Price again touches the previous point.
When to buy a stock to make profit?
Look at the above image. A stock price is downtrend from 45 and it reaches at 39 before changing its direction. This is a candlesticks chart’s pattern. Price started to fall from 45 to 39 within 29 days. Now the question is when should I buy this stock? You should buy near at 39.
That means if you buy earlier, you should follow stop loss in order to cut short your loss. You don’t even know this stock will reverse in the following day and reaches at 43.1 again. Your knowledge and experience will help you to take good decision.
” For Trading, best time to buy a stock at its downtrend reversal.”
And
For Investing, best time to buy at 52 weeks’ lowest price. Or at discounted price.
By Rasel Ahmed
When to sell a stock to a make profit?
In the above picture, price begins to uptrend from 76 and it reaches at 116 within 13 days. If a trader bought the stock at 76 and sell at 116, his gain percentage is 52.62. You should hold until it reverses after 116. Your perfect time of sell is 116 to 112.
For trading, best time to sell a stock at its uptrend reversal point..
And
For investing, best time to sell a stock at its 52 weeks’ high price. Or immediately before dividend declaration effect.
By Rasel Ahmed
Moreover, you can learn about when to sell a stock for profit. When your holding gradually reaches a new high, you should hold . Be cautious “Halt” holding. Halted stock means no sellers to sell stock, but many buyers want to buy at high price. In my experience, when a stock “Halt” for a day, this stock price begins to drop from the next day. This downtrend may continue for many days. Your unrealized gain may turn into unrealized loss.
Don’t make premature sell an uptrend stock. But cut short your loss as much as possible.
By Rasel Ahmed
Right time to buy and sell stock is its reverse point. When a stock price starts to uptrend, you should buy this stock at the very beginning point. You should sell the same stock when it starts to reverse from uptrend. Trade volume can help you to understand when the stock goes to reverse. If a stock changes its direction with huge volume, you should make up your mind to sell or buy.
Neutral stock
Above stock is neutral stock and its nature is unpredictable. You cannot predict its movement and may get stuck to find out buyers in some cases. Only uptrend and downtrend stock are better to buy-sell. All the successful investors may not profit all the time. So you should correct your decision as early as possible if you made trading mistakes. Moreover, stock market always provides opportunity. If you can catch it at the right time, you can become a gainer.
In Conclusion
Trade trend reversal is a good strategies to make profit from stock. Moreover, you can apply downtrend market trading strategies to make money in downtrend market. If you read the whole post carefully, you have learnt when to buy a stock and when to sell a stock to make profit.
Founder of The Financial Ask
