I start by understanding the investment's performance relative to the goals. If the investment meets or exceeds the established expectations, I consider it a good time to sell. I check market trends and economic indicators that inform me of the optimal time to exit. A good example is when the investment does not provide the desired profit. I prefer to exit before I suffer further loss.
Before you invest, establish clear goals for that investment. This could be a target return percentage, a specific timeframe you intend to hold it, or a combination of both. Then, diligently monitor market conditions and the performance of your investment. When the data indicates your predefined goals have been met, or if market conditions suggest a potential plateau in growth, that's likely the right time to exit. This ensures your exit strategy aligns perfectly with your overall investment plan and maximizes your returns.
Exiting a tangible investment takes time, so if it's real estate you're dumping, you need to be extra cautious and move as soon as the winds change. I was in this scenario as Covid-19 hit. I'd already been considering selling my office space and moving to a smaller leased building due to the trend in remote work. But suddenly, the issue was at the forefront. Everyone was working at home, ostensibly for a brief period, but I saw the writing on the wall, and suspected that not only would the pandemic stretch on, bringing people back into the office afterwards would be difficult. So I didn't hesitate. I put my space on the market the next day, and at an attractive price to move. Making that decision fast allowed me to beat the rush, and I sold in the nick of time. Soon the market was flooded and prices dropped. It was a good reminder that timing is everything, but especially so when you are dealing with a tangible asset. It's a scenario where sleeping on your decision can leave you holding the bag, so trust your gut and go fast.