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When do you sell shares?

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  • TheAble
    TheAble Posts: 1,676 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 30 January 2021 at 11:20AM
    You don't need to necessarily ever sell.  Some of my own shares I intend to hold permanently.
    Edit: irrespective of price I should add.
  • When I buy shares, it is usually because I recognise it is trading at a discount to the value I would place on it, or that I expect it is well positioned for growth.

    I would sell shares, if they reach/overreach my targets.
  • arnoldy
    arnoldy Posts: 505 Forumite
    Part of the Furniture 500 Posts Name Dropper
    edited 30 January 2021 at 11:44AM
    My own rules for selling shares:
    1. Don't sell unless you have something to reinvest into or need the £s
    2. Use the advantages of the private investor - buy and sell on volatility
    3. Sell when a share doesn't meat your original investment case. Eg I sold Babcock recently at a loss - I had though it was a steady eddy feeder on Government money, and the management could really !!!!!! that up. They did.
    4. NEVER buy a sell or share because it was X pounds in the past and therefore will be X pounds or so in the future. Eg Rolls-Royce shares were £12 and they are now circa £3 adjusted for the rights issue - that doesn't mean they are a buy.
  • Cus
    Cus Posts: 779 Forumite
    Sixth Anniversary 500 Posts Name Dropper
    I disagree with point 4 as a complete rule.  A significant drop in share price can be indicative of a number of things. The company might just be getting worse, less future prospects etc, but you might determine that the fundamentals are sound, future prospects are good and that it is oversold due to more macro themes.
  • I sell shares when they are overvalued either on their own merit or relative to the market outlook.
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    edited 30 January 2021 at 3:05PM
    really depends on your risk appetite, if your happy to buy and sell in a short period of time, Make sure you have some sleeping pills to help you sleep at night.  EQT/Gamestop is a good example of this volatility. Even IAG, CINE may fit that, with the roller coaster ride as well

    Value investing sounds plausible, but not everyone value share is equal, Lloyds, BT e.t.c are not ones you would like to invest in. 

    do your own research


    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
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