How and when to sell the stocks.

Mahawawtta · 1 How and when to sell the stocks. Fri May 02, 2014 9:11 am

Mahawawtta

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Dear Frineds, we know we can not early big money from stock market if you only consider Dividend. but we need to buy and sell shares as well. but i have my weakness to decided when to sell the shares when it earns profit. can you all suggest me to decide when to sell the shares and mechanism to decide the selling prices please

VALUEPICK · 2 Re: How and when to sell the stocks. Fri May 02, 2014 9:25 am

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It is one of the difficult questions to answer. It also depends on the individual trader or investor. Anybody can make mistake and market cannot predict. Long term Value investors will sell stocks when they see long term fundamental becomes weak. Chart traders buy and sell stocks according to the chart. There are box players plus fundamental players. They follow their method. Some never sell their stocks and they consider them as their own business. Finally some have their own method to buy and sell stocks.

Pethi · 3 Re: How and when to sell the stocks. Fri May 02, 2014 10:34 am

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ValuePick has given a good explanation. Could not have better one than that.

But if you really scared and panic when shares gone up considering that it'd come down and lose a lot (depending on your financial position). then, my advise is to think about Buddhism and satisfy what you have got and exit the market.

Even though the price is still have moved up, you can make up your mind saying that you got a good profit. too much greediness is not a good thing in many ways. it causes to suffering. Let it go...!
no one can predict the MKT even an experience investor. I don't think it is your weakness.

"the best example is I bought SAMP @ 165-170 levels and sold out @ 187 levels. But MKT moved up even after that. But I am satisfied as I got dividend + profit. I don't mind it is going up to 225 now. I have invested that money in to some other shares and they have given me good profits."

VALUEPICK · 4 Re: How and when to sell the stocks. Fri May 02, 2014 10:52 am

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Any industry can have favourable business climate at any time. When there is a bad business climate stock traders will sell their stocks and those stocks become damp cheap. These stocks give bigger return in a favourable business climate and in a turnaround. It is also time to identify out of favour companies with coming favourable business climate.

D.G.Dayaratne · 5 Re: How and when to sell the stocks. Fri May 02, 2014 11:34 am

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My present strategy is always sell at expected profit level

Buy shares with good fundamentals and pay dividends

No purchases beyond approved credit level

stevenapple · 6 Re: How and when to sell the stocks. Fri May 02, 2014 4:42 pm

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@Pethi wrote:ValuePick has given a good explanation. Could not have better one than that.

But if you really scared and panic when shares gone up considering that it'd come down and lose a lot (depending on your financial position). then, my advise is to think about Buddhism and satisfy what you have got and exit the market.

Even though the price is still have moved up, you can make up your mind saying that you got a good profit. too much greediness is not a good thing in many ways. it causes to suffering. Let it go...!
no one can predict the MKT even an experience investor. I don't think it is your weakness.

"the best example is I bought SAMP @ 165-170 levels and sold out @ 187 levels. But MKT moved up even after that. But I am satisfied as I got dividend + profit. I don't mind it is going up to 225 now. I have invested that money in to some other shares and they have given me good profits."

Mine is also some what simillar to Pethi.Only different is i don't dispose all the shares at once.Referring to Above scenario I may sell half at 187 and will watch for the price movement before i'm taking decission against the remaining.

gagamini · 7 Re: How and when to sell the stocks. Sat May 03, 2014 11:11 am

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I follow the box theory of Noclas Darvas where the share prices are made into boxes . Say a price of a share moves form 50-60 range to 60-65 range then that share is upgraded to that box . Monitor if it break and moves to 65-70 box and it means it is on uptrend and do not sell , hold on to it . If it moves further up with volume I will buy more . As long as it stays in that box no worries and no selling . Only selling begins when box is broken downwards with volume and that gives an indication for selling . Do not sell a share which has indicated its upward journey . It is a winner . A share which runs downward is looser which should be get rid of it quickly . Give attention to the volume factor and very less volume with price changes is not an indication for buy or sell .

I am not recommending it and its practical application depend on individual thinking pattern .

FLOWER2 · 8 Re: How and when to sell the stocks. Sat May 03, 2014 12:44 pm

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@gagamini wrote:I follow the box theory of Noclas Darvas where the share prices are made into boxes . Say a price of a share moves form 50-60 range to 60-65 range then that share is upgraded to that box . Monitor if it break and moves to 65-70 box and it means it is on uptrend and do not sell , hold on to it . If it moves further up with volume I will buy more . As long as it stays in that box no worries and no selling . Only selling begins when box is broken downwards with volume and that gives an indication for selling . Do not sell a share which has indicated its upward journey . It is a winner . A share which runs downward is looser which should be get rid of it quickly . Give attention to the volume factor and very less volume with price changes is not an indication for buy or sell .

I am not recommending it and its practical application depend on individual thinking pattern .

Box theory is a good one. Box players follow fundamentals in addition to boxes. As long as they are intact they keep their stocks even beyond one year. Otherwise they sell their stocks.

However on volume: Stocks such as NEST and CINS didn’t have much volume in their major uptrend except in few occasions. Did well even during poor market conditions. Some major shareholders including long term foreign investors never sell their stocks and they are for the long term business. In those types of companies public holdings are low. Not much quantity available to trade. They trade in small quantity. In a bull market there might be good demand for those types of stocks as well.

SHARK aka TAH · 9 Re: How and when to sell the stocks. Sat May 03, 2014 2:08 pm

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Its equally important to give serious thought to close a trade.as much time spent on entering at the right price, the right price to close is painstakingly difficult.

I think we have still not come to that chapter in ASI, as it just starting it advances Smile

gagamini · 10 Re: How and when to sell the stocks. Sat May 03, 2014 3:18 pm

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One thing I noted in our market in the recent past is , it is now rerated . What I mean is people who have burnt their fingers going behind junk shares during last bull run have realized the blunders they have done . The movement of TJL , EXPO , SHL etc. indicate this and I feel this is a good sign for development and sustainability of our capital market . Breaking next barrier of 6300+ and if it sustain that would give big boost to building the confidence of our retail sector for further enhancement of the ASI .

There are many counters which have not appreciated to their value and appreciation of those shares would happen with the entering of more retail investors .

VALUEPICK · 11 Re: How and when to sell the stocks. Sat May 03, 2014 3:50 pm

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Some shares are trading 50% discount to their net asset per share having long term growth. There are signs Unfavourable industries could become favourable industries. So there are opportunities. Shares of these Unfavourable industries are damp cheap. We are seeing some interest in these counters too. Further some value stocks having mid and long term growth stagnated for a long time. They too should get boost. Yesterday was a day for gold, silver, oil, grain due to easy money. Tomorrow is a day for emerging commodities.

D.G.Dayaratne · 12 Re: How and when to sell the stocks. Sun May 04, 2014 7:31 am

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What are the shares trading below 50 % of NAV

And What are the favorable industries ?

VALUEPICK · 13 Re: How and when to sell the stocks. Sun May 04, 2014 8:13 am

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In the plantation sector:

MPRH, MADU, BALA, MASK

In addition few more plantations companies are trading below their net asset per share such as UDPL, BOPL, HAPU, WATA and TPL

All time high for MPRH, BOPL,MADU, BALA, MASK, UDPL, HAPU and TPL are Rs.96, Rs.77,Rs.37, Rs.77.50, Rs.74.75, Rs.66, Rs.77, Rs.89.90 and Rs.55 respectively.

There are more in other sectors as well.

Favourable industries based on my study. According your study you will have more favourable sectors. Can you post some of your favourable sectors?

Food and beverages including poultry
Hotels and travels
Tea and tea related companies
Banking and Finance
Manufacturing
Healthcare

It is time to identify great winners in the above sectors. All the best!

D.G.Dayaratne · 14 Re: How and when to sell the stocks. Sun May 04, 2014 8:56 pm

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Thanks

I also think above sectors are favorable

VALUEPICK · 15 Re: How and when to sell the stocks. Mon May 05, 2014 11:15 am

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@D.G.Dayaratne wrote:Thanks

I also think above sectors are favorable

Other thing that we have to understand is that investment success cannot measure within one day within one month or one year. At least we should give five to six year time periods. If we follow above sectors you will identify mid and long term value of those businesses. Companies start as small and then they becomes big. There are cycles for some industries, commodities and assets. We had strong long term rally for commodities such as gold, silver, coffee and grain etc. Now they have stagnated and except coffee. Hereafter there could be long term rally for emerging commodities. Tea could be one of that. It is fast becoming very popular as a health drink in North America and Europe. Even tea demand is increasing countries such as India, China, Bangladesh, Pakistan and North Africa. We have to analyse number of mouths in those countries the coming years. They are going to eat more food and going to drink more hot beverages. Even top Multil National companies are expanding their hot beverages businesses in many countries. Now listed tea related companies are doing better than rubber oriented companies. They have more value than latter.

gagamini · 16 Re: How and when to sell the stocks. Mon May 05, 2014 4:44 pm

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@VALUEPICK wrote:

@D.G.Dayaratne wrote:Thanks

I also think above sectors are favorable

Other thing that we have to understand is that investment success cannot measure within one day within one month or one year. At least we should give five to six year time periods. If we follow above sectors you will identify mid and long term value of those businesses. Companies start as small and then they becomes big. There are cycles for some industries, commodities and assets. We had strong long term rally for commodities such as gold, silver, coffee and grain etc. Now they have stagnated and except coffee. Hereafter there could be long term rally for emerging commodities. Tea could be one of that. It is fast becoming very popular as a health drink in North America and Europe. Even tea demand is increasing countries such as India, China, Bangladesh, Pakistan and North Africa. We have to analyse number of mouths in those countries the coming years. They are going to eat more food and going to drink more hot beverages. Even top Multil National companies are expanding their hot beverages businesses in many countries. Now listed tea related companies are doing better than rubber oriented companies. They have more value than latter.

As you have stated the companies related to TEA , I would like to add little more . Our main competitor for tea is Kenya. As I know they are the number one and we are two as far as quantities are concerned . Another advantage Kenya is having over us is their labor force is more efficient than of us and daily plucking of each labor is almost double of ours . Further their yield per hectare is much higher than that of ours as Kenya's tea lands are not as old as of ours and continuous expansion of Kenyan tea industry is taking place whereas ours new plantation is minimal . All these factors affect to the cost of production (COP) and Kenyan tea production cost is very much low compared to us and that would have a negative effect for our tea industry and we may not be able to reap full benefit of demand growth in future . Quality wise Ceylon tea is much better than that of Kanyan tea . However , they have already encroached North Africa , Pakistan , some Middle Eastern countries and even North America. Earlier those markets were ours and due competitive prices we have lost those markets .

Further , unnecessary political interference into our tea industry through labour union also badly affect the profitability of listed tea companies . Politicians would not care about existence of those companies and their only concern is to increase their vote base and for that they would do anything .

When you consider these factors, I am in doubt about a bright future of our tea industry .

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How and when to sell the stocks.

1 How and when to sell the stocks. Fri May 02, 2014 9:11 am

Mahawawtta

2 Re: How and when to sell the stocks. Fri May 02, 2014 9:25 am

VALUEPICK

3 Re: How and when to sell the stocks. Fri May 02, 2014 10:34 am

Pethi

4 Re: How and when to sell the stocks. Fri May 02, 2014 10:52 am

VALUEPICK

5 Re: How and when to sell the stocks. Fri May 02, 2014 11:34 am

D.G.Dayaratne

6 Re: How and when to sell the stocks. Fri May 02, 2014 4:42 pm

stevenapple

7 Re: How and when to sell the stocks. Sat May 03, 2014 11:11 am

gagamini

8 Re: How and when to sell the stocks. Sat May 03, 2014 12:44 pm

FLOWER2

9 Re: How and when to sell the stocks. Sat May 03, 2014 2:08 pm

SHARK aka TAH

10 Re: How and when to sell the stocks. Sat May 03, 2014 3:18 pm

gagamini

11 Re: How and when to sell the stocks. Sat May 03, 2014 3:50 pm

VALUEPICK

12 Re: How and when to sell the stocks. Sun May 04, 2014 7:31 am

D.G.Dayaratne

13 Re: How and when to sell the stocks. Sun May 04, 2014 8:13 am

VALUEPICK

14 Re: How and when to sell the stocks. Sun May 04, 2014 8:56 pm

D.G.Dayaratne

15 Re: How and when to sell the stocks. Mon May 05, 2014 11:15 am

VALUEPICK

16 Re: How and when to sell the stocks. Mon May 05, 2014 4:44 pm

gagamini

17 Re: How and when to sell the stocks.

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