Mastering the Art of Timing: Lesser-Known Sell Signals for Profit Protection
AInvestMonday, Jan 6, 2025 8:30 am ET
3min read
O --


In the quest for gains, buying stocks is often the glamorous part of investing. However, having an in-depth knowledge of sell signals is the key to preserving capital during the most arduous parts of your stock market journey. By recognizing and acting on lesser-known sell signals, you can protect your profits and minimize losses, ultimately enhancing your overall investment performance. Let's explore some of these sell signals and learn how to integrate them into your portfolio management strategy.



1. Cutting Losses at 7-8% from the Purchase Price

William J. O'Neil, the legendary founder of Investor's Business Daily, emphasizes the importance of cutting losses at 7-8% from the purchase price. This rule helps protect your capital and ensures that you don't let your profits slip away. By setting a clear stop-loss level, you can avoid the temptation to hold onto losing positions in the hope that they will rebound.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.