Stock and Share - Exit Strategy (When to Sell)

 

To make millions from the stock market, you need to know when to sell your stock and shares. This is usually called share exit strategy. Exit strategy means a method of selling your stocks or shares on the stock exchange. Simply, exit strategy means when to sell your stocks and shares. In the business of stock trading, there are three basic issues:
a. When to buy
b. When to hold
c. When to sell

Out of these three basic issues, "when to sell" is the most difficult. Hence, the need for you to master when to sell if you really want to make millions from the stock market.

Over the years, research and experience have shown that there are five basic share exit strategies in the stock exchange:
1. Situational exit strategy
2. Period exit strategy
3. Price exit strategy
4. Closure of register exit strategy
5. Past performance exit strategy

1. SITUATIONAL EXIT STRATEGY

This strategy is used when an occurrence or situation pushes up the shares prices. A good example is when Otedola bought a controlling quantity of shares in AP stocks in 2007. The price of AP moved from N 60 to N260 under two months. You don not need a prophet to tell you to sell and take profit if you had bought cheap. A similar situation also occurred in international breweries plc.

2. PERIOD EXIT STRATEGY

This strategy is used when you have to buy and sell stocks within a period of time. It is usually applied to funds borrowed from banks and other financial institutions. Here, there is a time frame within which you have to invest the money in stocks and shares.You pay back at the expiration of the given period.Therefore you sell your stocks and shares within that period.

3. PRICE EXIT STRATEGY

This strategy is applied to a stock bought at a price and sold at a higher share price. Here, when you buy a stock in the stock market, you have a target price at which to sell. Hence, if the price share price appreciates to the price, you quickly sell off, take profit and move on to other stocks.

4. CLOSURE OF DATE EXIT STRATEGY

Companies that declare bonus or dividends always give a date for closure of register. The date for closure of register is the date at which anybody that have the company's shares on or before that day is entitled to the declared bonus or dividends. Anybody buying after that day is not entitled to the declared bonus or dividend. The strategy here is to sell at a day after the closure of register. With this, you gain the bonus, dividend and still gain the capital appreciation in the share price. I.e. you gain it all.

5. PAST PERFORMANCE EXIT STRATEGY

This strategy informs or suggests to an investor to sell a stock based on past price trend of the stock. Here, investors use the past behavior of the share price to decide when to sell the stock in the stock market.

GO SUCCEED.
Edoka Tony is a stock analyst with over 10 years of experience in the stock market. He dedicates his experience and knowledge to offering financial advice and helping people make mega millions in the stock market. He has written a lot of articles on stocks and investment which are a must read for every profit-minded investor.

Top 15 Tips For Successful Stock Trading

Trading stocks simply isn't for everyone. Some people can stand the volatility and the pressure that comes with it, and some people can't. Even among the few who can handle the heat, fewer yet will ultimately be successful doing it. While no exact rules can dictate what makes a lucrative stock trader, those Wall Street sages who are legends for making killer winnings in a short amount of time all have a few characteristics in common. 1. Successful stock traders can fight their instincts and act counter-intuitively.
2. Successful traders maintain a regimented system that's as easy and efficient as possible. It rarely makes a difference which system you use - technical analysis versus fundamentals or value versus quality, for example - as long as you adhere to it. A successful trader knows the benefits, as well as the shortcomings, of their system and executes trades based solely upon the system. "The secret to success is consistency of purpose." This means, you must create separate tactics for establishing positions and closing them.
3. Successful traders calculate risk and make decisions that lower their risk exposure. Successful traders abhor losing money and manage their losses before they become too great, even if that entails throwing in the towel and acknowledging they made an incorrect call.
4. However, successful traders are not afraid of mistakes or taking chances. Successful traders have what Native Americans refer to as, "sovereignty," which is the right and capability to do the wrong thing. Essentially, sovereignty is the courage to make your own mistakes, for it's from our greatest failures that we learn the most.
5. Successful traders are not embarrassed or afraid of taking losses. In fact, they expect them and know that an important part of trading is limiting losses and preserving capital.
6. Successful traders master how to analyze stocks. Many traders only use one form of analysis or seek research from one source, but comparing various reports and charts can give you a better picture.
7. Successful traders lead balanced lives. The rush that a homerun trade can produce is addictive, but a successful trader knows when to walk away - and more importantly, has something to walk toward, whether that is family, friends or hobbies.
8. A successful trader cultivates patience. This means letting profitable positions run their course, but it also means that when the market turns against them, they have the patience to try again and approach the market resiliently, courageously and with confidence.
9. A successful trader has a strong drive for success. Trading requires steady efforts, not haphazard positions established cavalierly. Determination to succeed can make all of the difference when the market is tumultuous because many people abandon ship.
10. A successful trader has discipline. That means reviewing markets and researching trades even if he isn't in the mood. Discipline also means holding to your strategy - not buying or selling positions because everyone else is doing it.
5 Bonus Tips
11. A successful trader understands the tactical differences between defensive and offensive behavior, and when each is best used. First, preserve capital, then profit.
12. Successful traders remain as emotionally detached as possible - this means ignoring rumors or Wall Street hearsay. They resist the temptation to join the crowd. Stop loss limits can help traders stay objective by preserving profits and ensuring that profit comes off of the table. While you may miss the rush of the lowest entry points and the highest selling points, stop losses let you sleep at night and live your life without being glued to the computer screen.
13. A successful trader knows himself and is very objective about his strengths and weaknesses. Know how to combat your weakness and implement strategies that capitalize on your strengths.
14. A successful trader knows their portfolio. Never let a trade slip through the cracks - keep detailed records and review your holdings often.
15. A successful trader sticks to the rules - the rules they set for themselves. When markets are moving swiftly, it's easy to lose your head. So, formulate a plan outside of the heat of the moment and stick to it to ensure trading success.

Investment Banks in Middle East

Following are the leading investment banks in the Middle East:

HSBC Middle East Ltd. - It has earned the titles of “Best Investment Bank in the Middle East” and “Best Cash Management House in the Middle East”. The Euromoney Awards for Excellence are given to institutions and individuals that demonstrate leadership, innovation, and momentum in their markets.

Beltone Financial - It is the fastest-growing investment bank in the Middle East and North Africa, providing a comprehensive range of financial services to a substantial and diversified client base that includes high-net-worth individuals, corporations, financial institutions and governments. Headquartered in Cairo, Beltone Financial has offices in Saudi Arabia, the United Arab Emirates, Syria, Libya, Qatar, New York and London.

NBK Capital - It has been named 'Best Investment Bank in the Middle East' for 2009 by The Banker magazine.

BLOMINVEST BANK - It was named Best Investment Bank in the Middle East for 2010 from Banker Middle East.

EFG Hermes - Founded in 1984, EFG Hermes is the premier investment bank in the Middle East and is recognized as the regions market leader in securities brokerage, asset management, investment banking, private equity, and research. The firm is listed on the Egyptian and London Stock exchanges and as at June 2008 had a market capitalization exceeding USD 3.5 billion.

J.P. Morgan - Euromoney has named J.P. Morgan top Investment Bank in the Middle East and UAE. Euromoney’s research team and awards panel rated all submissions on both quantitative and qualitative factors such as KPIs, financial ratios and innovation over the 12-month period to decide the winners.

Stock Investing Tips & Ideas

   Learn how to invest in the Stock market. If you are a beginner or an expert, you can find basic and advanced trading tips and ideas on stock investing in this site.
Before investing in the stock market, you'd better learn some tips about how to invest in the market. In other words understanding of the market is required.

Beginner Investing Tips and Ideas
(How to Begin):

Do you know? many people trade in the stock market with the same chance, but few percent of them make money in stocks. Many of these people, who don't earn enough return, have enough information about investing in the stock market. They make common mistakes and you should avoid them by having a high level of market understanding.
There are two analytic methods for investing in the stock market, technical and fundamental analysis.
Technical analysis is based on prices and volume. Technical investors believe price and volume interpret everything in the market. They study charts for forecasting of future stock price or financial price movements.
For learning technical analysis academic knowledge isn't required, with every level of knowledge you can learn it.
Fundamental analysis is a stock valuation method that uses financial and economic analysis to predict the movement of stock prices.
To begin investing in the stock market, you must choose a stock broker. A stock broker performs transactions in financial instruments on a stock market as an agent of their clients.
If you are a beginner see: Beginners Guide

Advanced Investing Tips and Ideas:

Learn more Technical Tips:
you can learn about Fibonacci Sequences, Elliott Wave Theory, Dow Theory and other stock trading strategies.
Stock Market Risk:
What's your understanding and Perception of risk? How do you recognize risk? Is risk Quantifiable? How to manage risk?
The concept of risk and managing it is a complicated part in investing money.
Automate your Trading:
You can learn and use trading software to automate your stock investing strategy. Many investors use stock trading software to control their emotions and to enable them to focus on their stock trading strategy.
There are many other advantages of using trading software and systems, such as saving time and managing your risk.
Enjoy Making money in stocks. We hope you improve your understanding of the stock market by reading and learning these Tips and Ideas.

Four steps to riches

We wanna know that something we require for achieving to rich:

1. A profit-optimizing investment philosophy is the first step for reaching to rich, the elements of which include:

a) Trading- as opposed to investing is the first part toward rich

b) Maximization of percent per year yield on each trade is the second part to rich

c) Maximization of percent of time invested is the third part to rich

d) Minimization of the trading interval is the fourth part to rich

e) Optimization of transaction timing is the fifth part to rich

2. Fast and simple issue selection for getting to rich

3. Fast and simple transaction-timing analysis is the other steps to rich

4. Accurate and timely stock price tracking is the last steps to rich

IPIC assumes majority ownership of Aabar

The International Petroleum Investment Company (IPIC), a Government energy investment fund, has assumed majority ownership of Aabar investments a day after the firm bought a stake in one of the world's largest carmakers.
IPIC converted the second tranche of a Dh6.6 billion (US$1.79) bond it bought from Aabar in September, increasing its ownership stake from 36 per cent to 71 per cent, Aabar said in a statement.
IPIC's full conversion of the bond will boost Aabar's capital pool hours after it agreed to spend Dh9.73 billion to buy a 9.1 per cent stake in Daimler, the maker of Mercedes Benz.
"We are delighted to have the opportunity to make this investment and are excited by the commercial potential of our partnership,” Khadem al Qubaisi, the chairman of Aabar, said yesterday.
Mr. al Qubaisi is also the managing director of IPIC, and has described Aabar as a mechanism to diversify the energy fund's investments away from energy.
Aabar is now the largest shareholder in Daimler. The two firms said yesterday that they would work together to develop electric cars and new types of material used in car manufacturing, as well as establish a training centre in Abu Dhabi to prepare Emiratis for work in the car manufacturing industry.
Aabar will pay €20.27 (Dh100.88) per share. Daimler plans to issue more than 96 million new shares in the company to Aabar, representing a 10 per cent increase in total share capital.
Mercedes Benz is the 13th largest car manufacturer, and the world's largest maker of lorries.
In addition to Mercedes, Daimler owns Maybach, the ultra-luxury automobile series and Smart, a compact two-seat car that has proved popular in Europe. – The National

Aldar unveils financial framework to place company on stable and sustainable place

Aldar Properties PJSC, Abu Dhabi's leading property development, investment and management company, yesterday unveiled a series of steps designed to solidify the company's position for long-term, sustainable growth. The measures are focused on addressing current market conditions and on boosting the company's capital structure.
These include the: Recognition of an approximately Dh10.5 billion (US$2.86 billion) impairment charge relating to the value of assets; Reimbursement and sales totalling Dh10.9 billion (US$2.97 billion) for the transfer of certain infrastructure assets on Yas Island including the recently opened Ferrari World Abu Dhabi theme park, roads, bridges, marine infrastructure, and land. This deal is consistent with an element of Aldar's business model under which the company has supported the long-term objectives of the Emirate of Abu Dhabi by building and developing strategic assets and transferring them to the Government upon completion; Placement of a convertible bond worth Dh2.8 billion (US$760 million) with Mubadala Development Company. The issuance of the bond is subject to shareholder approval at an upcoming Extraordinary General Meeting; and, Sale of residential units and land for Dh5.5 billion (US$1.49 billion) to the Government of Abu Dhabi.
"The financial framework approved by the Board, including the convertible bond issue, will strengthen our capital structure and provide us with a stable and sustainable platform from which we can continue to capture commercial opportunities to deliver value to shareholders." said Ahmed Al Sayegh, Chairman of Aldar. "The impairment recognition reflects the adverse conditions that have affected the real estate market, but is an important step in allowing Aldar to achieve long-term sustainable growth." Moving forward, Aldar will build on the experience gained as a strategic developer for Abu Dhabi and focus on the creation, ownership and operation of quality residential, commercial, retail, leisure and hospitality, and educational establishments. It will continue to adopt a measured approach to development, adapting to prevailing market conditions.
Aldar's diverse portfolio includes commercial developments such as Central Market, Al Raha Beach, Yas Island (including Yas Mall and Yas Hotel), HQ, and Al Bateen Park, and government projects such as the Al Falah Emirati housing project. In addition, the company continues to deliver major infrastructure works, as well as significant projects on behalf of Abu Dhabi companies such as Mubadala. - Emirates News Agency, WAM

Abu Dhabi makes plans for huge investment

The capital's economy in recent years has made major steps to diversify its economy away from oil revenues into petrochemicals, steel and aluminium. The multi-billion dirham projects are in line with Abu Dhabi's Economic Vision 2030 that aims for sustainable growth on a solid economic basis.
According to Abu Dhabi's Urban Planning Council some US$200 billion (Dh734 billion) will have been pumped by 2013 into various infrastructure projects.
"The idea behind Abu Dhabi's economic diversification is that if oil prices go down, there will be other sources of income to compensate [for the loss in oil revenue]," Mohammad Amerah, an Abu Dhabi-based economist, told Gulf News.
However, oil revenues are still an important source of revenue for the emirate, contributing 49 per cent to the GDP. Experts say that Abu Dhabi's economic growth momentum will gain traction in 2011 from surging international oil prices and fast-improving global business confidence which will help boost the emirate's non-oil income as well.
Abu Dhabi also has identified aviation and high-end business and leisure tourism as key elements in its economic growth strategy and is judiciously investing income from oil exports to become a major regional aviation hub. – Gulf News