When is it best to sell or hold stock?

The best time to sell a stock is when it has fallen. Many people try to catch a falling knife by buying a recently fallen stock, only to see it fall even further, resulting in massive losses for the investor.

The same reasoning applies to buying a stock. You should only buy a stock that has recently risen, indicating that the buyers outnumber the sellers. This is the main reason why investing and trading the financial markets is quite hard.

Most investors want to buy stocks when they are cheap, and they want to sell stocks when they are expensive. Most people do this hoping to catch the best deals on stocks but end up losing in the markets.

A simple rule for buying stocks is to buy when the stock has recently surpassed its previous 52-week highs. The opposite is true for selling; always sell stocks that have recently exceeded their 52-week lows.