Just thought I would like to say a few things about buying and selling shares online; if you're day trading or spread betting on the stock markets then of course it is okay to sell if you're in profit. The only drawback with selling, is finding a good entry point to get back in. You might make a few good calls, and think you've cracked this trading thing, but (always a but), eventually your capital will be eaten away with bad calls, or else you think, blimey, wish I had not sold now, it's still going up. You have to be really disciplined to make a living day trading. If it was easy, spread betting companies would not offer free training courses - it would be a bit like a turkey voting for Christmas.
To Sell or Not to Sell?
If you're in it for the long haul and you're an investor, even if you're well in profit, you might still prefer not to sell the shares. Of course you still need to monitor how the company is performing and should the enterprise start to go pear shaped, you should not hesitate to sell. In such cases you stand to lose a little profit but nothing serious really. I have found it to be true, that the bigger profits come to those who are patient, the only thing the long term investor has to worry about is how the company is performing, so you must keep an eye on company you have invested in. And if it's going down, as stated, you sell, simple, see!
Last week I did a quick analysis of where I would have been today if I hadn't traded my share holdings so much over the last twelve months and just stuck with what I believed were companies with good fundamentals when I originally invested. Conclusion: overall better off and with less trading fees!
Impatience and wanting to lock in a reasonable return early was my weakness (and, of course, the misguided punt in CTT's share price, where I didn't have my eye on the ball). Trying to be somewhere in between a trader and an investor was profitable but not life-changing.
I'm now a reformed/wiser spread trader and, whilst watching closely, unless anything seriously changes, I'm trying to look to the horizon rather than my spreadsheet for a better balanced judgement before selling.
About this Author
David Forey is an independent trader specializing in short-to medium-term technical strategies. He is the founder of spreadbetting education website dedicated to free trader education and discussion.
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