Six practical skills for selling stocks are necessary in buying and selling transactions

The stock market is constantly changing. Even if you buy the right stocks at the right price and timing, if you don't sell them at the right time, then all the previous efforts will be in vain. It can be seen that when to sell stocks is more difficult and important than when to buy stocks and what kind of stocks to buy. So, investors must establish some basic selling principles to make their investment decisions free from emotional interference.
Sell the company decisively after restructuring For many investors, company restructuring and new investment projects often mean that the company will generate new benefits, which seems to be a good buying opportunity. But in reality, from a fundamental perspective, this is often a time when the company's business prospects are not good. Imagine if your current business could make a lot of money, would you still want to restructure or invest in other projects? Of course, some companies can grow rapidly again after restructuring, but experience shows that most of the restructuring results have not achieved the expected goals. Moreover, from the perspective of the stock market, these news are often used by institutions as an excuse to sell. So, once the company restructuring is completed, the stocks in hand should be sold immediately. Sell when there are better investment opportunities Being able to accurately determine the bottom and top of price trends is the dream of every investor, but reality is cruel. Therefore, for most investors, a better strategy may be not to judge the top and bottom, but to hold on indefinitely. Only when you discover better investment opportunities, do you sell stocks and buy new ones. Sell when reallocating investments Usually, using portfolio investment is a good method. You can invest one-third of your funds in high-tech stocks, one-third in low P/E ratio stocks, and one-third in small cap stocks, and then make regular adjustments. For example, a few months later, due to the rise in the value of the high-tech stock market, which has accounted for half of the total proportion, you need to reduce your holdings of high-tech stocks and replenish your funds to other sectors. Sell when the stock price exceeds the target price If you haven't set a target price from the beginning, then you don't need to pay attention to this. But if you set a target price, once you truly reach that price, you should take the initiative to implement the operation. Because you are generally rational when setting a target price, but when the stock price rises, most people's minds start to heat up. Therefore, to avoid making mistakes, it is best to sell in a timely manner. Sell when the market forms a major trend At this point, those who make money must resolutely clear their positions and sell them all, while those who suffer losses must also 'cut off their courage'. Historical statistical data shows that when the market forms a large head and falls, 90% -95% of individual stocks will also form a large head and follow the market's decline; When the market forms a large bottom, 80% -90% of individual stocks will also form a large bottom. This indicates that the vast majority of individual stocks have a strong linkage with the overall market. Therefore, once the market forms a large head area, decisive shipment is the most important. Not afraid of mistakes, just afraid of procrastination. Sell when a stock suddenly rises sharply The main force usually relies on the frenzy of retail investors to buy at high prices, and only when individual stocks are heated up will retail investors follow suit. So, in the early stage, the main force continuously raises the stock price through the form of ups and downs, and when they plan to sell, the stock price continues to rise significantly. At this time, the trading volume also sharply increases, which is a sign that the main force uses the frenzy of retail investors to continuously sell. In general, the 20 day divergence rate of stock prices is 25%, accompanied by a sharp increase in trading volume. The probability of a stock price peaking in the short or even medium term is quite high, and it is advisable to sell the stock at this time.