1. The stock reaches your "stop-loss" limit
This is a very easy way to make sure that a stock will never lose more than you can afford to lose. A stop-loss is a minimum price you are willing to let a stock decline to before you cut your losses and sell.
2. The company's fundamentals have changed for the worse
Equities can have adverse reactions to news and earnings events, but that does not necessarily mean that the company is doomed. If Google's stock dropped 10% in a day, you would not necessarily think that the company is doomed, right?
3. The company declared bankruptcy
Now, I pray you had the foresight to see this coming (*cough* Blockbuster *cough*) but sometimes there are situations where the company will declare bankruptcy with only a few signs in advance. If you missed the boat and the stock is still collapsing, go ahead and sell it - there's no hope it will come back.
In summary
In the end, it's important to remember that selling a stock at a loss is not the end of the world. And surely if you keep investing, you will more than make up the difference with big winners in the long-run.
How to pull money out of the stock market?
If you know you are pulling money out of the market, begin by selling riskier stocks first, as those are the most volatile and most likely to fluctuate quickly. Additionally, planning your sell-off ahead of time and spreading it out over several days, weeks or months allows you to avoid daily dips in the market and sell when the price is right. ...
How does a stop order work?
A stop order works by essentially functioning as an automatic sell-off command when the stock reaches a certain price.
How to grow money over a long period of time?
The best way to grow your money over a long period of time is to leave it in the market and ride the highs and lows , knowing that the market will, in all likelihood, drastically improve before you plan to withdraw your long-term investments.
When to place limit orders on stock?
Place limit orders on your stock sales if you are not in an urgent hurry to get out of the market. If the stock has been vacillating in a price range for a while, place a limit order near the high end of the price range and wait for the stock price to rise to that level.
Is it wrong to sell on emotion?
Be sure that you aren't acting purely on emotion when you decide to sell. Selling on emotion usually proves to be the wrong thing to do in the long run.