Oftentimes, amateur investors only focus on their upside and when’s the best time to buy a stock. But you have to remember that buying a stock is only one part of the equation. Unless you plan to hold a stock for its dividends, knowing when to sell a stock is also just as important to making capital gains in the stock market.

There’s no point in buying a stock at a bargain, see its price rise all the way up, and then witness it come tumbling back down again when the winds change. In this case, all your potential gains are wiped out because you failed to recognise when to sell a stock and capitalise on the opportunity to lock in your profits at the right time.

Sometimes, investors are also not sure when to sell a stock because they’re afraid of losing out if the stock price rises ...