1. The best time to sell is when projections turn out positive. The business is prospering and the market is adjusting price to match expectation. There are times when the market get overly excited and stocks become overpriced; this is a perfect time to sell.
2. Keeping money in a losing position in hopes of a rebound is not advisable.
3. Sale to take a tax deduction, capture a loss, and repurchase the stock after an allowable period under the wash sale rule.
During a bear market, money managers sell investments to satisfy redemptions, forcing prices to collapse further. Stocks begin trading below their value. The investors job is to access whether the recession is short-term or long-term.
ML - The way the world works - analyzing how things work