When to Sell Your Stocks

Depends on Stock Market Corrections

Selling Stocks is as easy as buying a stock. However, what really is most important is knowing WHEN to sell your stocks.

Here are questions you should ask yourself:

  1. Why do gurus say that the market will crash?
    It is not out of the goodness of their hearts or that they want to do you a favor. They are scam artists intending to make money.
  1. What do these gurus have to gain by telling you that the market is about to crash?
    Perhaps these gurus are already Selling Short stocks, and they are hoping you will panic and sell so they can buy stocks at bargain prices.
  1. How could anyone possibly know how far the Stock Market would fall in any particular year or at any particular time? Are they time travelers from the future?
    The fact is that the Stock Market has lost over 80% only once in over 100 years. That occurred back in the 1929–1932 Bear Market.
    I repeat, there has only been an 80% loss in the Dow once in over 100 years.

Here is some history regarding Stock Market loss percentages:

During the 2008–2009 Bear Market, the Dow 30 lost about 50% from the previous high. During the 2000–2002 Bear Market, it lost about 30%.

During the 1987 Bear Market, it lost about 40%. The average amount of loss for a Bear Market during all of the Bear Markets of the past 100 years is around 40%. A loss of 50% happened once. This means guru predictions need to be scrutinized and viewed with extreme skepticism.

How far the Stock Market falls during a correction depends upon these factors:

  1. The fundamental values of the corporations which are traded in the Stock Market.
  2. The technical support levels and technical candlestick patterns which coincide with the fundamental values.
  3. The redemption demands from Mutual Fund Investors.

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Trade Wisely,

Martha Stokes CMT

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses

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