When should you sell stocks in the stock market? When is the right time to sell your stocks? How can you become multi-millionaire by selling stocks? We already discussed when is the best time to buy stocks, right now we are in the selling and reaping our rewards part.
This discussion I’m sharing here is for passive and long term investing in the stock market. It is suitable for value investing and may not be applicable for active investing, penny stocks and trading within short span of time.
Even if the common logic is we buy stocks when the price is low and we sell stocks when the price is high, that doesn’t answer the exact thing we want – when should we sell our stocks?
As always, we begin in the 3 basic ingredients of investing: MONEY, TIME and GOAL because it is the main formula.
We learned from the previous post that TIME answers the question when should we buy stocks, in here GOAL answers our question when we should sell stocks.
Simple is it? Why make it more complicated. 🙂
Our goal is to earn millions of money with our stock investments and we can only earn money when we sell stocks following our PLAN and STRATEGY.
Our GOAL is also our TARGET.
We should always remember this big formula:
- BUY – buy using your own strategy
- SELL – sell at the target price or at target period
Following any of these strategies:
3 Amazing Strategies When to Sell Stocks in the Stock Market
1. Peso-Cost-Averaging Method:
Peso-Cost-Averaging (PCA) is when you buy stocks regularly and periodically following your comfortable schedules, doesn’t matter when, as long as you invest stocks regularly and continue doing it.
When do you sell stocks using PCA?
PCA works only for long term investing since you build up your investment and you let it grow and appreciate in value. You sell stocks following your plan, be it in 10 years or 15 years. It’s up to you.
2. Magic 10 Stocks:
Magic 10 is the best and most effective strategy I found so far because it has Big 5 and Fantastic 5 stocks. This is a method wherein I choose 10 stocks from my big companies list and allocate my budget to keep on buying and adding shares as I build up my portfolio. Follow Magic 10 method here.
When should you sell stocks using Magic 10?
I am a long term investor and I just keep my money roll big time. Keeping it 10 companies and continue doing it in 10 years, then I stop and retire happily. I sell at the target price and replenish more stocks to keep it all 10. If you’re wondering about my personal strategy, I will be discussing it in another post soon.
3. Flipping Undervalued Stocks:
Flipping Undervalued Stocks is taking the opportunity to buy stocks while they are undervalued or cheap at present then buying below the BBP margin and selling at your Target Price. This can take in a short time or long time depending on your Target. The best tip here is choose blue chips as much as possible or those under BPPI (Bank, property, Power and Infra) sectors.
When should you sell stocks using Flipping Method?
Sell at the Target Price or at the fair value of the stock. We share the list of Undervalued Stocks in this page together with their BBP and TP for your guide or reference.
When should you sell stocks in the stock market?
Your strategy and goal will tell you when to sell your stocks. If you don’t have any of these, you don’t have a plan. If you don’t have a plan, you’re not going anywhere or perhaps you’re there on the road of the stock market, wondering about what ifs, what could have been, and what should be.
Let your stock market strategy do its job while you enjoy your holidays at the beach
Without a plan, you could be impulsive in buying or selling stocks. You might panic when prices go down. You might freak out when the market is on crash. You might get emotional and when you get emotional you can’t quite decide what is right or wrong.
“Have a plan and stick to it.”
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Hi Ms. Fehl,
kindly enlighten me about the COL PLUS account in Col Financial. the site says this is for active traders. does this mean that this is for investors who buy stocks and sell the same once they have reached their target price, regardless, of the time frame? i’m still new in stock investing and i’m not yet into long term investing as i’m still learning.
thank you.
Active traders mean you check out stocks updates and portfolio every now and then or invest, trade different stocks every now and then or you’re more active than those who only rely on EIP
San ko po mahahanap yung blue-chip companies or top 30? Thanks po
We share some of them at Dailypik
Here are their tickers
TEL, SM, ALI, SMPH, JGS, AC, URC, BPI, BDO, AP, AEV, MER, GLO, MBT, AGI, ICT, GTCAP, JFC, DMC, SCC, MEG, SMC, LRG, EDC, BLOOM, RLC, MPI, FGEN, PCOR, EMP.
hi ms. fehl,
very informative and ang clear mo magexplain.
question lang po..what if na.reach mo na ung target price from a certain company and you sold it.. would you still recommend buying stocks from the same company? and gano katagal ung interval from the point of selling it to buying again? may possibility ba na tumaas ulit target price? or would you recommend po trying other companies? thank you soo much!!
Hi Gwen. Thank you. Yes, you can still buy from that company again in the future. I follow Magic 10 and Flipping Stocks strategy. You can read about them at Dailypik. Cheers!
hi fehl, how to determine the target price, thanks
Target Price is usually the Fair Value of the stock or any reasonable amount close to FV.
thanks fehl, seems it will take months for us to reach our target value. i was very grateful i see ur blog and helped me a lot in starting my investment.,,, more power to us
We just sold RLC today, it reached our Target in 3 months only
how many times per month is Col updating its investment guide? and for how long its validity? example their last update was feb 27, so is it applicable for 1 week, or more?
time is gold and patience is a virtue hehe
I think 2 times a month. It will be applicable until you noticed an adjustment or change with the FV of the stock.
Hi! ms fel,
Once again i have a question , i invested in particular stocks and i just recently read a news from col, that the said company has announcing the stocks rights of offering, i am confused what is the purpose or the meaning of this, it is a good sign or bad news? it is sign to sell or just continue to hold or invest, and the value now is almost -5% down. hoping for kind reply,. btw the said company is a consider a blue stock. tnks and more power.. god bless!
Stock rights are opportunity rather than worries. They are offered to existing stockholders usually when the company will issue new shares or raise new funds. The stock price offering price does not necessarily mean the stock price in the Exchange.
Good day Ms. Fehl,
Nowadays, stocks are erratic & i remember your suggestion “to stick to the plan”, for example the
JFC i bought it 3 months ago for 190 per share & it reach 230 on 1st week of Feb, then now it slowly gowing down to 225.
Before i am not aware of “Target price”, now my JFC decline to 20%, is it advisable to “sell” my small amount of stocks because of declining value, news of protests, political unstability & some calamities?? so that i might buy some other “low-profile” stocks but still included in “blue chips”?
Thank you for unwavering advices & help. God bless..
Hi. It’s normal coz there are times when prices will dive talaga. If your original plan is investing monthly for JFC with a Target Term (rather than Target Price), you must follow it. If you are only flipping stocks, then follow the BBP and TP. It’s always about your original strategy and not being affected by the ups and down in the market. As they say, don’t get emotional and don’t panic or you’ll go crazy 🙂
Hi ms. fehl. Thank you so much for your very informative blog. I would like to know if its possible to be a day trader and long time investor on COL at the same time? Let say split the budget 80 percent for long time investment and 20percent for day trade. I want to try both if possible. I aready have existing uitf, mutual and vul.
Thank you.
Yes, that is very possible if you want it and if you have the time for it. 🙂
Hi Fehl,
Just a curious question. As I check the charts and prices of several stocks, i notice that most of them plunged sometime last dec 17-19 but immediately recovered the following days. Do you happen to know what happened those days that triggered the prices to go down? Thanks and regards.
Ricky
Yes, this was exactly what happened: http://dailypik.com/psei-down-at-6912ish-today-below-7000-what-should-we-do/ I remember I also posted a BUY ALERT during those times. 🙂
tnk u ! xo much ms fehl, god bless u always..
Hi fhel,
Just asking if how to compute your earning in particular stocks, let say i bought MBT at P88, and sell P106, how to compute my price earnings? Im newbie in stock market and huge help to read your blogs. God bless and salamat !
106-88 x #shares less some little fees associated with the stocks bought and sold. No worries, those little fees are too little 🙂 You’ll be able to see your gains/loss on your portfolio anyway.
hello! Tanong ko lang po, paano po kung hindi mo na ibenta ang stocks for 10 years or more, anong mangyayari? is it required ba talaga na i-sell mo o hayaan lang? anong companies ang nagbibigay ng dividends kung kumikita sila. plano ko pa lang magstart na mag-invest.
Hi! It may either earn more or lose some of its value. You need a plan to follow. Blue chip companies or the top 30 usually give dividends
hi fehl.
im just wondering if u had experienced a hard time selling your stocks? i mean, even though u want to sell,if there are no buyers on ur preferred selling price, u cant sell it.or u may be forced to lower it than the lowest buying price of d previous day to ensure there are takers?!
will appreciate ur comment. many thanks,
That is why I choose only those stocks from blue-chip companies. They are always easy to sell. 🙂 Never had experienced with no buyers yet so far
Hey, Thanks!
I just don’t know where to begin thou PSE seminars give you the technical terms and how you read them but after that your on your own never gonna tell you how to begin.
Thanks for the guide. Cheers!
I know how that feels. If you’re on EIP, you still don’t know which should you pick. Hey, join our FB Stock Daily Picks community, I share there what stocks I buy and post there when should I sell.
“If you’re wondering about my personal strategy, I will be discussing it in another post soon.”
-Yes Fehl yes we are XD!
So if we are not satisfied with the price of the stock that we want to sell then we should keep buying stocks until it reaches the price that we plan and when the time comes, that’s when we initiate our exit strategy?
Hi Yce! It’s always nice to see you around here. Thank you for that. Yup, I will share my personal strategy here soon. I’m just completing the step-by-step series and then I’ll share about that. 🙂
Yes, every investor has Target Price or Target Period. It is like the finish line. We get our trophy when we reached that line or point. 🙂 To get there, we must continue buying our chosen stocks. The more we buy, the more money we will receive in the end.
Hi! Im really interested about investing through COL… I’m really curious about earning through stocks without selling your shares yet.. is it through dividends? THANKS
Yes we can also earn money through dividends when your company declared them.
Thanks for the reply Ms. Fehl! Do we need to link a bank account for depositing funds or withdrawing earnings through COL?
You’re welcome. You can withdraw your funds by either check or deposit to your bank account. You need to choose one by filing up “Request for Withdrawal of Funds” form found in you COL account HOME and then FORMS