If there is an operation of vital relevance to establish the success of your investment, that will be none other than the sales you develop on the stock exchanges. And fundamentally it will be very important, not only to make the most of the investment, but to protect your savings in scenarios fundamentally unfavorable to your interests. You must know when to execute your sell order and under what conditions.
With complete certainty that the difference of applying a good sale to one that is not will be enormous, and there will be many euros at stake, which you should not forgive under any circumstances. Surely more than once in your history as a small investor you will have wondered why you did not execute this order, and from this dynamic you would have saved yourself a lot of problems for the change. From now on you will not have excuses to repeat this unpleasant situation.
The first recommendation for successful trading in the equity markets is to know when, and in which situations should you sell your shares in the stock markets. In some cases, it will be basically to close operations and enjoy the capital gains generated by their operation. But in other cases it will be somewhat more complex, and its main objective will be to protect the invested capital, even to prevent losses from becoming more acute and definitively installed during the next trading sessions.
However, this decision, which will be very personal, will depend on other variables that are not associated with the financial markets, much less with the share price. On the one hand, the profile it presents as a retail investor. If you are aggressive, conservative or intermediate, it will determine in a certain way the order of sale. Like the term to which you direct your investment: short, medium or long. Depending on all these factors, and some others that you will find in this post, you will have to develop your sales in the markets in one way or another.
To help you develop a correct investment strategy, you will have no choice but to follow a series of action guidelines that will be of great advantage to you every time you plan to close operations. At the same time, it will not cost you much to apply them, since they are enabled for all types of investors.
Some you can intuit, or even have applied them at some point in your life. But possibly that others will be oblivious to your frequent behaviorBut that can get you out of more than one hurdle in your dealings with the stock markets. Even from surely original approaches, and that you did not even know.
First key: adjust to resistance
At the same time, The supports are other levels of great relevance for your investment.. Not surprisingly, when they are infringed, they will be the perfect excuse for you to close operations quickly. Unless you expose yourself to accumulated losses in your investment portfolio permanently. Hence the relevance for you to respect these levels presented by prices, and based on them formalize your sales in the equity markets.
Second key: faced with liquidity needs
If your investment is generating profits, and for any situation, you need liquidity to face some personal expenses: debts with third parties, pay bills or finance the next trip with your family. you should not miss the opportunity and sell your shares. You should not try to squeeze the maximum capital gains that can be generated, because any setback in the financial markets can ruin your profits in the stock market.
Third key: after large revaluations
Above all important are the overbought levels, which give very clear indications that in the next sessions sales will prevail over purchases. It is another of the scenarios that must involve you to complete the operations, even temporarily. Even with the opportunity that later you can buy back the shares, but with cheaper prices.
Fourth key: before any sign of weakness.
Everything may work out perfectly in the investment portfolio you made a few years ago. But before any weakness, either in the stock markets, or in the company of which you are a shareholder, it will help you undo your shares as soon as possible. Not surprisingly, it may be the prelude to corrective movements of greater intensity.
One of the most useful strategies to check this status will be that the minimum in its price will be decreasing. Quite a sign that will imply that the change in trend has definitely settled on the value that positions have taken. The best solution will start from the order you give the bank to sell your participation.
Fifth key: act without greed
Do not try to force gains in equities, and to that end that old saying that is applied disciplined in the stock markets and that says that "The last euro will be taken by someone else". Good advice, which will undoubtedly help you on more than one occasion, and which the most experienced investors can attest to regarding its application and the benefits it generates for them.
It is preferable, instead, don't rush a stock's bullish ride, instead of staying stuck in the market. And this situation can lead you to make terrible sales, many of them with significant losses that will weigh on your personal assets. To avoid these cases, so common among retail investors, the most favorable strategy to defend your interests will be to apply a sell order that limits losses. It will be feasible through the well-known stop loss, which will help you achieve your goals.
Sixth key: accept the mistakes made
It may be that in the end everything is as easy as you made a mistake when selecting the securities that make up your investment portfolio. Or basically your quotes are not moving as you initially expected. For this case, you must admit the mistake and sell the shares directly, losing money in the operation. There will be no choice if you do not want your situation to become more unfavorable to your interests.
At the same time, it will help you redirect your investment strategy towards other listed companies, which possibly have better growth prospects in their prices. And with which to amortize the failure of your previous contact with the markets. Inclusive, you can choose from securities with very high dividend yield, up to 8%. They will compensate the accumulated losses for the previous action.
Seventh key: adjustment to the real price of the shares.
One of the most objective parameters to sell your positions in equities will be that when the shares are close to their target price, it will be the moment in which you should get rid of them. To this end, the data provided by the brokers will help you develop the sale procedure. They rarely exceed their price by more than 10%. It is not important to emphasize taking the risk when you meet these levels.
Another very different thing is that your investments are trading very far from these prices, so the margins to continue in your positions will be more flexible. And with enough travel to obtain the desired goals from the beginning.
Eighth key: flee from unfavorable news
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Also the negative news about the evolution of the world economy they are passed on to company prices, which depreciate in a few trading sessions. Of course you can remedy it, if before the first signs of weakness in the markets appear, you finally decide to close all the positions that you have open at that moment.
Ninth key: with symptoms of exhaustion
Usually the intuition of the own investor is decisive to see how the prices of the actions will evolve during the next weeks. Until they come to the conclusion that the value in question has little travel, or at least, that its appreciation potential has been exhausted. This is not the time to risk your buying positions.
The signs that show this situation, on the other hand, can be beautifully visualized using a graph. Showing, if necessary, to show how the general positions of sellers are clearly imposed on buyers. It will not be worth staying in the market, even if your positions are not truly winning. From this perspective, technical analysis will be the best tool you have to spot these weakening signs.
