The chart above uses technical analysis to plot exactly when to sell stocks. In the next few paragraphs, this chart will be explained. It’s important to note that when trading stocks, its best to have some type of system to take the emotion out of trading.
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When To Sell Stocks : Based on Technical Levels
Remember that when you buy stocks you must also know when to sell stocks. Plot your selling point immediately.
Knowing when to sell stocks is crucial if you want to make money. When you sell out of your position, it must always be based on technical analysis. All cases may vary, but in general, you should sell at key technical levels, or use an indicator to set a stop loss order to sell. By using technical indications, there are no second guessing. What you are doing is setting parameters of behavior that agree with the Breakout Theory Trading System. When you have strict rules and guidelines everything becomes automatic. Always use a stop loss order.
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Support and Resistance – This is another technical point that will tell you when to sell stocks. If a position starts to trade below support, sell immediately. Looking at the Apple chart above, the handle would be considered an area of consolidation. If the the price drops below the breakout level, or below the handle (red horizontal line) you would want to sell and put in a stop loss order to be executed at around $421.
Volatility Stop ( V-Stop) – This indicator is perhaps the easiest to use when deciding to sell. Plotted on the Apple chart is a 21 period / day V-Stop line. You simply sell if Apple’s stock price trades below the V-stop line. This is a great indicator because as the stock moves up, the V-stop moves up as well. You simply keep moving up your stop loss order to lock in profits. In the Apple chart above, we can see that Apple’s stock chart, there was a price action breakout. The best place to your stop loss order to sell.
Technical Analysis – The price that you sell determined by some form of technical analysis. Once you have determined the price you will sell, only then will you be able to better manage your risk. It is used in calculating how many shares to buy on the breakout. It also plays a role is total portfolio value risk. It’s important that you have a solid foundation in technical analysis so that when you do plot the selling price, it is as accurate as possible.
Learning to Sell Stocks For Profits
The strategy explained above is the selling strategy to minimize loss. This strategy is implemented initially when you first make the trade. If things go well, you will not be selling at a loss. The stock you bought may start to move upward and you will have to adjust your selling point accordingly. Many traders make the mistake of selling too soon. To sell at he right time for max profit requires a method >> Click here