Rules of Selling Stock

When is the right time to sell a stock?

1. Sell when stock become overvalue. Use intrinsic value analysis & PE to identify.
2. Sell when business is no longer great. Regularly check the quarterly & yearly financial report, spot any negative indication changes..eg, earning, sales, cash flow & debts..etc. Take it is quite normal a drop of these few indicators, understand why? temporary? or permanent?
3. Sell when you need money for a better investment.
4. Sell when trend reverse into down-trend.
5. Sell when the stock price drop your minimum acceptance level, let say 10%, 15% or 20% from your previous purchase price.

Happy Investing!