02/04/2026
π’ When to BUY shares
1. Strong company fundamentals
Look for companies with:
Growing profits and revenues
Low debt levels
Consistent dividend payments
Examples on NSE often include stable firms like Safaricom or Equity Group Holdings.
2. Undervalued stock (cheap price)
If a stockβs price is low compared to its true value, it might be a good buy.
Use metrics like P/E ratio, book value, etc.
Compare with industry averages
3. Positive news or growth prospects
Buy when:
A company announces expansion
New products/services are launched
The economy is improving
4. Market dips (Buy the dip)
When the overall market drops but the company is still strong, it may be a buying opportunity.
5. Dividend timing
Buy before the book closure date if you want to receive dividends.
π΄ When to SELL shares
1. Youβve reached your profit target
Set a goal (e.g., 20% gain). Once achieved, consider selling instead of getting greedy.
2. Company fundamentals worsen
Sell if:
Profits are declining
Debt is rising
Management issues arise
3. Overvalued stock
If the price rises too fast without strong fundamentals, it may be time to exit.
4. Better opportunities elsewhere
Sometimes selling helps you reinvest in better-performing stocks.
5. Stop-loss trigger
Protect yourself from losses:
Example: Sell if price drops 10β15% below your buying price