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When You Must Exit In Stocks


There are a lot of articles that talk about how to get in to the stock market. Which is great. A lot of people want to get in to the stock market but don’t know where to start. However once all of these people get in to the market, they need to know how to get out. After all the money you make on the stock is not made when you get in to the market. The money you make on the stock market is made when you get out of the market that is when you sell your stocks. Hopefully you will sell your stocks for a profit and that leaves you with a profit.

So how to get out, while staying on top? Well you need to work with your own stops and limits. What the heck?

· You need work with stops and limits, which means that you have a set of stop points and limits. So before you start you need to know where and when you are going to stop.

· It’s best to set your stops and limits early on, because once your emotions get involved. So for instance if you own a thousand shares in a company that is currently at $2.5 per share. You get excited because the price is steadily rising by a few cents every day. Something tells you to sell when they get to $3. Once it gets to $2.9 you decide to wait it out. Sure enough the stock rises to $3.50 over the next while and you decide to keep waiting it out. This is where it gets tricky, because as we all know what goes up must go down. So waiting it out can end up costing 50 cents a share when it drops and imagine the profit you would have made on your original buy price!

· Never expect to make a bundle in a week. You will have good weeks and of course you will have bad weeks. If you implement a range of stops and limits those bad weeks a little easier, or at least not completely wiped out.

· Never partake in revenge trading. Revenge trading means that once you lose money you start investing to get your money back. But this rarely works because if the market has just taken a dip it’s not a great time to get a whole range of new stocks. Wait till things have calmed down a bit.

· Most brokerage firms have an automated stop system that will immediately sell or put your stocks out there the minute they reach your stop point. This means that you won’t have the chance to renege on your stop point.

· Always sell and buy when you feel comfortable, never put yourself under the pressure of too many tips and trade gossip.

· You need to make sure that you never spend more in the stock market than you can live without. If you do take a dive you will find it very hard to recover if you have nothing.

· Periodically speak with an adviser and look over your portfolio. Don’t keep stocks that aren’t or do not look like they will growth and improve.

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14 comments:

  1. Thank you for informative and helpful tips. I've been worried about this for a little while and thank god I saw this just right in time. I almost did revenge trading once but didn't do it since it wasn't clear to me at that time and now that I know what it is, I think I won't do revenge trading. It seems to risky.

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  2. I am guilty of revenge trading quite a feew times. However I stopped trading with my emotions and things are much better.

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  3. As a rule of thumb I always abide by my stop loss limits. It's a simple technique that can help save from a lot of losses.

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  4. It's definitely good to know your limit and to not get too emotionally invested in stocks. Setting rules of when to begin and when to exit are good ways to stay grounded and keep a steady income.

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  5. A lot of tips can be overwhelming if you try to listen to all of them. That's why I like to rely on my own insticts and research.

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  6. When delving into the stock market it's best to treat it as a sort of gamble. Only invest what you are comfortable losing.

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  7. The biggest problem with many traders is that they expect to strike it rich within the first few weeks of trading. Such expectations leads to poor decisions.

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  8. You don't mix emotions with business, otherwise you will fail. Plan your exit strategy early on and stick to it, because you don't know when the stock prices are going to start falling.

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  9. Stock trading is not a magic game so don't expect to make a fortune in a week. It takes time and a lot of patience for your profits to accumulate. Great insight there.

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  10. It's always cool to sell at ease. There is no need for pressure in stock trades.

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  11. Rizzee CerdeΓ±olaMarch 2, 2019 at 4:48 AM

    I always have this question in mind when to stop and this article answered it for me. The answer is knowing the stop and limits.

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  12. There should be limit to everything we need to do including trading stock. Infact let our emotions be at Bay so that we can actually strive.

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  13. I will always ready that I don't need to make spend more in the stock market than I can live without. I need to be sure before taking dive.

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  14. One should always buy and sell on their own accord. Bottom line, all stocks pretty much rise over time it's all a waiting game. Don't sell your stocks if they are taking a little decline. Although, if the price has diminished significantly you may want to sell them.

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