When do you sell shares?

benbay001

No clive, you definitely need to buy high and sell low.

Nam3Unavailable

clive0510 said:

Well I've allways gone with the old theory of buy low sell high. whether that be business, class ads, jumble sales, what ever. so given my well thought out strategy and the current climate. surely one would think the time for buying is now.

So theoretically, now would be a good time to buy BP shares as they are lower than they have been in the past (also fully aware that they could drop further or go bust!) but I asked a similar question relating to funds on another thread - I have a Vanguard ISA and want to fill the remaining allowance before the end of the tax year, however when I look at their funds past history nothing sticks out massively as a ‘time is now’ buying opportunity, they all seem to be at a level or above their pre pandemic amounts?

HHarry

Nam3Unavailable said:

So theoretically, now would be a good time to buy BP shares as they are lower than they have been in the past (also fully aware that they could drop further or go bust!)

I thought the same with my Lloyds shares.  After dropping from £4 to £1 I bought some - they’ve got the potential to get back to £4, right?  I could quadruple my money.
 Or, as actually happened they could drop to 20p

Individual shares have the potential to see some spectacular gains if you get in and out at the right time, like Tesla.  But it takes a little bit of luck to find the right company at the right time at the right price.

Many of the mainstream multi-asset funds are close to all time highs, so there are no ‘bargains’ to be found and the potential for a massive increase is limited.  But, on average, you are likely to see yearly gains without the risk of losing everything.

What’s your appetite for risk?

Nam3Unavailable

HHarry said:

What’s your appetite for risk?

 I don’t mind making reasonably high risk investments.

Thrugelmir

Nam3Unavailable said:

clive0510 said:

Well I've allways gone with the old theory of buy low sell high. whether that be business, class ads, jumble sales, what ever. so given my well thought out strategy and the current climate. surely one would think the time for buying is now.

So theoretically, now would be a good time to buy BP shares as they are lower than they have been in the past (also fully aware that they could drop further or go bust!) but I asked a similar question relating to funds on another thread 

That's why one needs to do research and come up with an informed view for oneself. BP is regarded as a dinosaur by the green brigade. On the basis of fundamentals it's forecast to produce more free cash flow than Orsted over the next 5 years. Channeling into the right transformative investments is the big challenge that lies ahead. 

Nam3Unavailable

I own some shares but I genuinely don’t have any idea when I will sell them and that worries me lol

Thrugelmir

Nam3Unavailable said:

I own some shares but I genuinely don’t have any idea when I will sell them and that worries me lol

Why are you holding individual shares then? Perhaps a broader based fund would be more appropriate. 

barnstar2077

Nam3Unavailable said:

I own some shares but I genuinely don’t have any idea when I will sell them and that worries me lol

As others have suggested, it is probably best to start out with a global fund first and then add some individual shares in later once your confidence is higher.  I buy VLS 100.  If it goes down I just get my next purchase at a cheaper price.  These kind of funds contain thousands of shares spread across multiple countries so if anything ever happened to them that was serious enough for you to lose all of your money then I garauntee you money would be the least of your concerns. 

Nam3Unavailable

Thrugelmir said:

Why are you holding individual shares then? Perhaps a broader based fund would be more appropriate. 

I suppose it’s because these individual shares are lower than usual where most funds aren’t. I think Ineed to research and get myself to a place where I know I will sell once they hit a point

Old_Lifer

When I buy shares,  it is in a company which  I have already been following for a  quite a while,  typically for 1-2 years and perhaps longer .   This means I already know a good deal about the company and the market in which it operates and where it sees itself going in the next few years.   When I buy shares I have no particular sell-point in mind.  I will continue to hold the shares as long as I have confidence in the future of the company.  I may hold shares in a company for years or even decades.

Trying to make a quick 20 or 30 percent in a short period of time by flitting from one share to another  is the mentality of the day trader.    If you buy on a whim  because the share price is going up, you may quickly find yourself underwater and that 30 percent  if it happens may take months or much longer to achieve.