Is it time to take profit on shares??

porkypine

Hello Everyone,

I am a new member on this forum however I have been investing for several months and joined Dividend Edge with Motley Fool several months ago.

I have been investing in the FTSE for several years although sold most before July. I started re buying back some shares early August when the FTSE crashed to 5000.

At the moment I have several stocks showing some nice profit. Some actually have risen by 20%. I understand that a long term investor like me shouldn't be thinking of taking profits but with the markets as they are I just feel that it would be criminal for me to loose the profits I have.

I am thinking of taking some of the profits in 3 or 4 of the 20 odd stocks I own.

What are your thoughts about the market at the moment and should I be doing this or hanging fire??

All help and advise would be appreciated.

Thanks!!

lvader

If you sell it all, the FTSE will hit 6000 and you will miss out, if you don't sell the FTSE will crash again.;) Maybe start to take some profits, but be very careful of selling the good shares that went up for a reason and keeping the duff ones.

I'm holding, if the FTSE crashes again I'll just buy more.

bandana999

Thing is, a "profit" isn't actually a profit till you sell.

Buying and selling at the right time is what it's all about, and if I knew the right time I'd be on a beach somewhere....:cool:

If you've got a good paper profit, then I would sell, and not worry too much even if the shares went up afterwards, but be ready to buy again in the unlikely event:rotfl: there's a crash.

gadgetmind

I just can't get my head around a self-declared long term investor wanting to cash out on the sightest blip upwards.

I really don't think you've understood your own strategy.

Why?

talexuser

I've had the same thought several times in the last ups and downs, sell all my stock funds to cash reserve (0.25% cost), wait for the next Euro or bank panic (Greece, Italy, Spain etc) market drops 4 or 5%, then buy the same funds back again.

If only it was so easy...:p

Lokolo

I sold my shares yesterday at a 29% profit over 8 weeks, I was getting nervous and wanted the profit.

Currently the result is sitting as cash waiting for me to pick up my next winner.

ses6jwg

Mine S&S ISA currently showing a small loss. Has varied between +16% and -12% over the last 2 years.

However doesn't take into account the dividends which I have been collecting for the last 2 years

Jegersmart

Well, there is nothing wrong in taking some of the profits now when you are talking about 20ish% profit - especially when the medium term for the European region looks very bleak indeed. Assuming you have a reasonable holding where dealing costs are not a concern then I would consider taking a part of it, to lock in some gains. Whether you believe the Euro area problems have now all been sorted should be factored in to your decision. Of course as others have pointed out, your investment strategy should include an exit pointor timescale - so this is one that only you can answer for your own position, risk and exposure. Well done though so far.

Personally I picked up some RBS and LLOY a few weeks back as a first tranche as alonger term hold, however on the funds side I have taken the opportunity after the recent 10% or so rise from the low to sell some equities holdings and reduce risk further as I do not believe we are done with the current volatile situation. I have gone from approx. 80% equities and 18% fixed income in August to around 51% equities now, with 18% bonds and the rest in MM and Cash. No one knows what will happen but it was a good move to sell in July, I was a bit late and starting selling when the FTSE was around 5700....^^

moneylover

porkypine wrote: »

Hello Everyone,

I am a new member on this forum however I have been investing for several months and joined Dividend Edge with Motley Fool several months ago.

What is Dividend Edge please? A foru on Motley Fool? A newsletter?

wookie6

Even if you see yourself as a long term holder, I see nothing wrong with taking profits. The only way you will lose out is if the shares only rise from here on and you no longer hold them.

If they fall, even by a little and you re-invest all the money from the sale, as long as you can cover your broker fees you are in the same position as you were except you have a little extra money in the bank.

Its all speculation and a profit is never a profit until its in your bank.

lvader

There is a danger in taking profits too early on good shares and taking unlimited losses on the bad ones. Thats not to say you shouldn't take profits from time to time, just like you shouldn't be too afraid to book a loss on a dud.