All about investment

By Amit Malhotra

Perhaps selling your options in the market is the decision taker for all the profits and losses. Selling, when talking as activity, is actually the most important aspect for any business and the same applies to this market. Each trader trades in different options of different companies, whether they are purchased for day trading or options have to be sold according to market conditions. However, selling of those options demands a better timing and great coordination to the market conditions.

Well, it should be noted that timing for sale of stocks is never perfect and satisfactory. Most of the traders, before they sell, keep a hold of them for some time. They seek that as soon as the profit line starts to decline, they can sell that and when they are at their minimum price, they try to grab their ownership looking for the increase in the price in the near future. However, for long-term investors, his decision for buying and selling is comparatively easier as they have a whole lot of analysis with them on the movements of stocks.

The selling part of trading is especially not easy. There are two conditions in the process of selling despite the ups and downs of the market. In the first case, there is always a probability that the trader might hold them, and in respect to its future down coming, he may end up selling them. However, most of the times, they feel that holding the stocks for some more time would fetch them some more profit. This situation must however, be avoided because a sudden downfall might have brought the trader losses.

When the stock is going down, some traders sell them and end up having less profit or no profit. But some traders hold that options with them with the hope that it might increase in the next future. This trading technique, here, completely turns out to be a failure most of the times. It should be noted that there are rare cases that they go down and shoots up in next future. Here, a trader who holds them might have to bear heavy losses. Hence, it is advisable to sell those options as soon as possible when it goes down.

However, a trader might hold that stock but this decision should accompany a well-calculated approach. The past trend of the particular ones must be well studied and if it shows better recovery aspects than there is no harm holding them for the future growth. Hence, it can be concluded that selling stock is all about timing, though, timing is never perfect but proper calculations can fetch a day trader better returns.