Understanding When to Sell Stocks: Three Key Rules for Investors

Join me as we explore three key rules for deciding when it's time to sell your investments, including understanding significant trend lines, moving averages, and chart patterns.

Here are 22 clean bullet points summarizing the video:
CA Rachnar introduces himself and welcomes viewers to a video about understanding when it's the right time to sell stocks.
The speaker emphasizes that many investors spend more time studying before buying a stock, but less time considering selling.
He shares three rules he follows when deciding whether to sell a stock:
1. Never go against the trend.
2. If a significant trend line is broken, wait for a confirmation candle and consider selling on a closing basis.
3. Consider selling if a stock climbs 40-50% above its 200-day moving average (Dema).
The speaker uses an example of CDSL to illustrate his first rule: never go against the trend.
He emphasizes that if the trend line is broken, it's best to wait for a confirmation candle before making a decision.
An example of CAMS is used to demonstrate how the trend line was broken and then confirmed with a red candle.
The speaker suggests using the 200-Dema indicator as a long-term average.
He provides an example of how to calculate the percentage up move from the 200-Dema level: if the stock price is 50% above the 200-Dema, it may be overextended and time to consider selling partially (
The speaker emphasizes that the channel is about selling reality, not dreams.
He shares an example of CDSL where the stock price only climbed 33% above its 200-Dema before dropping, but still triggered a sell signal due to the broken trend line.
Rule number one: if a significant trend line is broken, it's time to quit (sell).
Rule number two: if the stock price is 40-50% above its 200-Dema, consider selling partially (50%).
The speaker discusses his third rule: considering selling if a chart pattern target has been achieved.
He suggests checking out the blog on the triple bottom formation pattern and completing the homework assignment.
The speaker emphasizes that it's essential to understand whether a stock is in the triple bottom pattern or not before making any decisions.
He encourages viewers to check out the channel's blogs, which are available daily at rashnarandday.com.
The speaker shares an example of how to use the chart pattern to determine when to sell: if the target has been achieved, it may be time to consider selling.

Source: CA Rachana Phadke Ranade via YouTube

❓ What do you think? What are the key factors that should influence your decision when considering whether it's the right time to sell a stock? Feel free to share your thoughts in the comments!