Is it time to take profit on shares??

westy22

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

It's a paid-for share tipping service operated by MF concentrating on high dividend yielding shares.

gadgetmind

wookie6 wrote: »

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.

While it's not for me, I can see the logic behind trading shares that have a fairly well defined range, but no way would I trade a share that I'd deliberately bought for its long-term dividend income potential. This is mainly because we (well, my wife!) holds these "unwrapped" because of the tax advantages of dividend income, and we need to avoid capital gains.

Linton

westy22 wrote: »

It's a paid-for share tipping service operated by MF concentrating on high dividend yielding shares.

So the OP is buying high dividend shares.

Are these shares s/he wants to sell still paying a high dividend?

If yes - what's the problem?
If no - then sell them unless they have some other merit.

Timing buys and sells in IMHO a temporarily low and rapidly changing market is unlikely to make the amateur much profit and there is a good chance of being out of the market when the prices really rise.

A general rule: buy an investment for a specific purpose. As long as it satisfies that purpose keep it. Once it fails and looks like it could keep failing move to something better if the move would justify the cost.

zildjian

"leave some profit for the next man"

porkypine

gadgetmind wrote: »

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?

Hi,

I think you have misunderstood me I am not wanting to sell anything but the market conditions are so extreme and are so unpredictable at the moment I am a little concerned.

The state of the economic conditions around the world are exactly the same as they were 2 weeks ago, and yet 2 weeks ago the FTSE dropped well below the 5000 mark and now up to just under 5400. We are seeing 2% to 3% swings in a couple of days and it just seems that things are being manipulated.

I have decided to hold fire with ALL of my stocks and keep reinvesting dividends. Hope for a downside in the future so that I can take advantage of further buying.

Regards,
Paula

porkypine

moneylover wrote: »

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

Hi,

It is a subsciption service from Motley Fool which concentrates on high yielding dividend shares.

If you go to the following you will find it:-
motleyfooldotcodotuk
Thanks

porkypine

Jegersmart wrote: »

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....^^

Hi,

After much thought I have decided to hold fire with ALL of my profit stocks and keep for the time being. I have only owned them for a few weeks and they are all good quality high yielding stocks so no reason to sell apart from the markets being so volatile which is my main concern and worry.

I am not overweight on any of the stocks nor am I overweight on equities at the moment and have lots of cash to buy later if and when they drop again.

Thanks for your comments and yes I was lucky to sell 90% before July. Purchased most of my stocks again from Aug 8th when the floor dropped out of the FTSE!!:beer:

porkypine

Linton wrote: »

So the OP is buying high dividend shares.

Are these shares s/he wants to sell still paying a high dividend?

If yes - what's the problem?
If no - then sell them unless they have some other merit.

Timing buys and sells in IMHO a temporarily low and rapidly changing market is unlikely to make the amateur much profit and there is a good chance of being out of the market when the prices really rise.

A general rule: buy an investment for a specific purpose. As long as it satisfies that purpose keep it. Once it fails and looks like it could keep failing move to something better if the move would justify the cost.

Hi,

Yes all stocks are high dividend yielding shares mainly FTSE 100. I was fortunate to purchase the majority when the FTSE crashed early August so got some real bargains and now showing some very nice profits.

I have decided to keep ALL of the stocks for the moment. My main concern and worry is the volatility with ALL markets at the moment. The FTSE seems to have had a nice little rally over the last few days jumping from lows last week of well below 5000 to around 5400 now. Just getting a little edgy and waiting for the next big falls.!!

I am not overweight on enquities and have plenty of cash waiting to buy if and when the opportunities occur which I am sure they will in the future.

Thanks Paula

Ark_Welder

Hi Paula

Volatility in the short-term does seem worrisome, but in the context of long-term investing then it should only be of concern towards the end of the term, not so much at the beginning. An easy thing for me to say!

I started investing about 18 months before the steep stockmarket falls in 1987, which were concentrated over just a few days. What looked like big falls back then (which they were), just appear as a blip now on historic charts of the FTSE100 and All-Share. No guarantees that the current volatility won't continue for a while yet, nor that shares will do will in the immediate term. But if you are in this for the long-term then by selling now you might miss out on a bounce if everyone suddenly decides that the world economy is hunky-dory. Also, trading too much can eat into your returns because of the taxes and charges applied, plus bid/offer spreads (even if these are a lot smaller these days).

gadgetmind

porkypine wrote: »

The state of the economic conditions around the world are exactly the same as they were 2 weeks ago, and yet 2 weeks ago the FTSE dropped well below the 5000 mark and now up to just under 5400.

The world is suffering from a cool head deficiency.

I have decided to hold fire with ALL of my stocks and keep reinvesting dividends. Hope for a downside in the future so that I can take advantage of further buying.

That's a cool-headed view. Well done.