InvestorQ : Is there any proper analysis to view your portfolio & decide to exit the holdings from the portfolio?
NISHA Nayak made post

Is there any proper analysis to view your portfolio & decide to exit the holdings from the portfolio?

Mitali Bhutta answered.
3 years ago
In portfolio management, most investors spend very less time thinking about portfolio management. Individual investors tend to trade their portfolio based on news flow, tips and price action. They use price targets and stop losses to buy and sell stocks in their portfolios. This tends to create a lot of activity in the portfolio and is one of the leading causes of retail investor underperformance.
The investor needs to focus on the quarterly reports and the progress of the business and ignore the daily price fluctuations. This would allow him to achieve similar results and peace of mind.
Every quarter companies release their financial information, and investors should focus on what's going on with the business and less on the day-to-day price fluctuation of the stocks they hold. A longer-term focus with less activity should lead to higher long-term returns.
Keep an eye on how different types of assets react to market conditions. When markets perform badly, most of the investors sell their investment in panic. However, these kinds of haphazard decisions can be avoided by keeping track of investment. 
Hence, you must take the responsibility of tracking the performance of your portfolio.
Remain invested over different market cycles is particularly important for equity investors. It helps in mitigating the risk that you may encounter while entering or exiting a particular investment or category at a bad time in the economic cycle. Longer time periods smooth those fluctuations. 
Be disciplined about sticking to whatever strategy you choose for monitoring your portfolio. 
Having a strategy to sell is as important as having a strategy to buy. It is crucial as apart from the non-performance, there can be other factors that might require you to sell your funds. While there cannot be a set formula for determining the perfect time to sell an investment.
Making money on stocks involves just two key decisions: Buying at the right time and selling at the right time. You've got to get both of them right to make a profit. There are only three good reasons to sell:
Buying the stock was a mistake in the first place.
The stock price has risen dramatically.
The stock has reached a silly and unsustainable price.