When to sell investments

danco

I need to sell some investments in the next few months. From an ISA, so no tax implications.

I'm wondering if there are generally accepted views on when to sell. Obviously the market can move up or down, and I'm not asking for advice on that.

The kind of answer I'm looking for is on the lines of "If you must sell in December, do it in the first week" or "sell in January, not December".

There used to be a saying "Sell in May and go away", but I don't know if people still follow that, and anyway for me it needs to be before the end of January

InvesterJones

If there were any such tips, they would have long been taken advantage of by traders looking to make money off the people reading such tips.

So no, there are no timing tricks, and if you need the money, you need the money - you could set a price at which you're happy to sell any time before x deadline, but accept that you'll still sell at the deadline if it's not met.

Baldytyke88

Can you just put an order to sell your shares at 1-2% more than they are now. I sometimes do that with my shares listed in my Hargreaves Lansdown account, it lasts for 30 days.

Exodi

InvesterJones said:

If there were any such tips, they would have long been taken advantage of by traders looking to make money off the people reading such tips.

This pretty much. The market is efficient.

Baldytyke88 said:

Can you just put an order to sell your shares at 1-2% more than they are now. I sometimes do that with my shares listed in my Hargreaves Lansdown account, it lasts for 30 days.

Seems a totally unnecessary risk for 1-2% that is closer to gambling than financial wisdom. Should the shares start to decline you'll then never sell and inevitably keep resetting your limit order 1-2% above the current trading price all the way down. The OP states they need the money in the next few months.

The OP should just sell when they need to. None of us are in possession of a crystal ball and anyone that can tell you exactly when you should buy and sell would have unlocked infinite wealth.

dunstonh

I'm wondering if there are generally accepted views on when to sell. Obviously the market can move up or down, and I'm not asking for advice on that.

About 3-5 years before you need the money.     If you need the money in 3-5 months and don't own a TARDIS then sell now.    Markets are near recent peaks.  It really boils down to your risk level and the importance of what you are using the money for.   i.e. could you afford a 40% loss?

LHW99

If the amount you get is important, you can put a "Stop loss" on, so they would be sold if the price dropped. But be aware that if the market drop is very swift, then the actual deal may come through below that amount, as the price changes between the trigger and the execution.

I think with II you can put one on up the 90 days ahead, but it's a long time since I wanted to use one.

mebu60

Sell now so you've got the cash you need then transfer it to an EA cash ISA? 

wmb194

About the only thing that regularly happens is a Santa Claus rally close to Christmas but what happens in the rest of the month is a shrug.

Swipe

You could take a look at seasonality charts for an overall trend over the years but by no means is it a guarantee of how the year will play out.

Bravepants

Sell whenever you need the money. However, you might think about building up a cash buffer so you don't have to sell too much of your investments at short notice in the future should you need to make some unexpected expenditure. 

You might accomplish that by monthly drip drawing (the opposite of drip feeding) from your investments over a period of time.  

Hoenir

LHW99 said:

If the amount you get is important, you can put a "Stop loss" on, so they would be sold if the price dropped. 

The amount the shares actually sell for could be well beneath the stop loss limit. Stop Loss doesn't guarantee a fixed price. Every trade requires two parties.