Knowing when to get out of the stock market looks pretty easy on paper, you must “sell expensive!”. However, it is difficult to sell expensive when you are on a run. Leaving the stock market is more about the restriction and less about the numbers.
Define your investment needs in order to know when to sell
Write your investment goals. If you invest in the stock market to plan your retirement, then, stay in the market for most of your youth, and gradually exit the market, as you get older. You do not want to have your retirement money in a volatile market, so when approaching retirement, withdraw the money from the reserves and place it in the safest values such as bonds. Younger people can keep their money in stocks because if there is a decline, they have more time to recover.
Sell higher than you paid. If you bought a stock of US $ 20 per share and now that share is at the US $ 50 per share, you might consider selling them if you want to collect and use that money. Selling higher is the key.
Sell when you have made a good profit and do not become greedy. Get your portion, and move on. Consistent and good movements are better than winning the lottery with an action.
Hold on to your action if it has fallen in value. Do not sell for an amount less than what you already paid. If some fall in price, average the cost in dollars and buy more shares. Yes, you buy more. The price of the stock is going to rise and when it does, you will own more than you did initially and the prices have increased exponentially.
Be patient and distant in the market. If you can keep your emotions out of the market and wait for a good rate of return or for the market to rise again after a low, then you will succeed in entering and leaving the market.
The only people who never lose money in the stock market are those who sell at a loss. Paper losses are just that, paper losses are not real losses. Most of the people who lost money (on paper) in 2009 have had their money back and a little more. The only people who lost were those who sold.