What Are the General Rules for Selling and Buying Stock?

There are a couple of rules you should follow for selling your stocks, whether losing or winning.

When bad days are happening, the best thing I always do is I aim to limit my losses between 7-9%, so I can't lose much money, but I can probably win if a stock lowers by about 5% firstly and then starts to rise.

When we leave the bad days, we aim for profits. Even then, there are rules that can help you. One of the best feelings surely is when our stock prices go up. If the market is healthy, it is smart to take your profits at 20% to 30% gain.

Another rule I respect is when a stock skyrockets for over 20% in about two weeks, the best thing you should do is to hold it for 7 to 8 weeks, mainly because it's an indicator for a huge market winner.

The most common-sense strategy is to sell as a stock rises in order to lock in gains over time and to sell into losses in order to avoid them from spiraling out of control.

In the end, there is no bulletproof strategy on the right time to sell, but the key is having a disciplined policy on why you buy, how long you hold, and when you sell. If you can be disciplined over the long term and that is the key to your strategy, you can have a better chance of creating more wealth down the road.