If there is any operation of vital importance to determine the success of your investment, that will be none other than the sales you develop in the stock markets. And especially it will be very important, not only to optimize the investment, but to protect your savings from scenarios especially unfavorable for your interests. You should know when to execute your sales order, and under what conditions.

Surely the difference of applying an optimal sale to one that is not will be enormous, and there will be many euros at stake, which you should not forgive under any circumstances. Surely, more than once in your history as a small investor, you have asked yourself why you did not execute this order, and in this way you would have saved yourself a lot of displeasure for the change. From now on you will no longer have excuses to repeat this unpleasant situation.

The first recommendation to successfully develop your operations in the equity markets is to know when and under what situations you have to sell your shares on the stock markets. In some cases, it will be simply to close the operations and enjoy the capital gains generated from your operation. But in other cases it will be a little more complicated, and its main objective will be to protect the invested capital, even avoiding that the losses worsen and settle definitively during the next trading sessions and learn the best stocks to buy

However, this decision, which will be very personal, will depend on other variables that are not linked to the financial markets, much less to the share price. On the one hand, the profile you present as a retail investor. If you are aggressive, conservative or intermediate will determine in some way the order of sale. The same is true for the term to which you direct your investment: short, medium or long. Depending on all these factors, and some others that you will find in this article, you will have to develop your sales in the markets in one way or another.

In order to help you develop a correct investment strategy, you will have to follow a series of guidelines that will be very useful to you every time you consider closing operations. In addition, it won’t cost you much to apply them, as they are suitable for all types of investors.

Some of them may be intuitive, or you may even have applied them once in your life. But surely others will be foreign to your usual behavior, but may get you out of more than one predicament in your relations with the equity markets. Even from certainly original approaches, and that you didn’t even know.

First Tip: adjusting to resistances

The first point of reference for executing sell orders is to close on the approach of some significant level of resistance in the quotes. Normally they will stop the bullish trend of the affected values, and that could even be the signal to undertake important corrections from these levels. However, if the resistances are overcome, the potential for appreciation is enormous. Although it is not advisable that you risk excessively, and you should choose to apply the sales to enjoy the gains made.

Likewise, the supports are other levels of great importance for your investment. Not in vain, when they are violated, they will be the perfect excuse for you to close operations quickly. Unless you expose yourself to losses accumulating in your investment portfolio definitively. This is why it is so important for you to respect these levels that the quotations present, and according to them, to formalize your sales in the equity markets.

Second Tip: in the face of liquidity needs

If your investment is generating profits, and for any reason, you need liquidity to face some personal expenses: debts to third parties, payment of bills, or financing the next trip with your family, you should not let the occasion pass and sell your shares. Do not try to squeeze the maximum capital gains that can be generated, because any setback in the financial markets can ruin your profits in the stock market.

Third Tip: after large revaluations

In a scenario where your shares have appreciated as a result of a prolonged uptrend, it will be one of the moments when you will have to plant yourself to close the trades. Not in vain, you risk that stocks tend to correct their prices, even very sharply. To the point of limiting, or even nullifying, part of your profits. It is not worth continuing with open positions in the stock markets.

Especially important are the levels of overbuying, which give very clear indications that in the next sessions sales will take precedence over purchases. It is another of the scenarios that must involve you to finalize operations, even temporarily. Even with the possibility that later you can buy back the shares, but with cheaper prices.

Fourth Tip: before any sign of weakness

Maybe everything fits perfectly in the investment portfolio you made a few years ago. But in the event of any weakness, either in the stock markets or in the company of which you are a shareholder, it will help you to get rid of your shares as quickly as possible. Not in vain, it could be the prelude to more intense corrective movements.

One of the most useful strategies to check this state will be that the minimums in its price will be decreasing. All a signal that will imply that the change of tendency has been installed definitively in the value that you have taken positions. The best solution will start from the order you give to the bank to sell your participation.

Fifth Tip: acting without greed

Don’t try to force profits on equities, and that old saying, which is applied in a disciplined manner in stock markets and says “the last euro will be taken by another”, may help. A good piece of advice, which will undoubtedly help you on more than one occasion, and which the most experienced investors can vouch for in terms of its application and the profits it generates.

It is preferable, on the other hand, not to rush into the bullish course of a share, rather than being trapped in the market. And this situation can lead to bad sales, many of them with significant losses that will burden your personal assets. To avoid these cases, so common among retail investors, the most favorable strategy to defend your interests will be to apply a sales order that limits losses. It will be possible through the known stop loss, which will help you achieve the objectives.

Sixth Tip: assume the mistakes made

In the end, everything may be as simple as you’ve made a mistake in choosing the securities that make up your investment portfolio. Or simply their quotes do not move as you had initially planned. In this case, you will have to recognize the error and sell the shares directly, losing money in the operation. There will be no choice if you do not want your situation to become more unfavourable to your interests.

In addition, it will serve to redirect your investment strategy towards other listed companies, which probably have better prospects of growth in their prices. And with which to amortize the failure of your previous contact with the markets. You can even opt for stocks with a very high dividend yield of up to 8%. They will compensate for the accumulated losses from the previous action.

Seventh Tip: adjust to the real price of the shares

One of the most objective parameters for selling your equity positions will be that when stocks approach their target price, that’s when you’ll have to get rid of them. In this sense, the data provided by brokers will help you to develop the selling process. Rarely are they exceeded in price by more than 10%. It is not worth the risk to reach these levels.

Another very different thing is that your investments are quoted very far from these prices, so that the margins to follow in your positions will be more flexible. And with enough distance to achieve the desired goals from the beginning.

Tip Eighth: Running Away From Unfavorable News

In the face of any news, or noteworthy event that damages the price of your shares, the quickest strategy to protect your savings will be none other than to sell your shares. In these situations, which are also common in the financial markets, it is not uncommon for the main intermediaries to make downward revisions to their target price.

Also the negative news about the evolution of the economy at a global level are transferred to the prices of the companies, which depreciate in a few sessions of the stock market. Of course, you can remedy this if, faced with the first signs of weakness in the markets, you finally decide to close all the positions you have open at that time.

Ninth Tip: with symptoms of exhaustion

Many times the intuition of the investor himself is decisive to see how share prices are going to evolve over the next few weeks. Until they come to the conclusion that the security in question has little to go on, or at least that its potential for appreciation has been exhausted. It won’t be the time to risk your buying positions.

Signals showing this situation, on the other hand, can be perfectly visualized through a graph. Showing, if necessary, to show how the general positions of the sellers are clearly imposed on the buyers. It will not be worth it to you to continue in the market, even if your positions are not really winning. From this perspective, technical analysis will be the best tool you have to detect these signs of weakening.