Knowing how to sell shares is an important step in the investing process. However, before you get trigger-happy and start smashing that sell button, there are a few things to consider. Ideally, make sure you’ve got a decent grasp of the costs, what it means for your taxes, and importantly – whether you should be selling your shares in the first place.
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Every stock market investment should be approached with a long-term perspective. Market movements are inherently unpredictable. Committing to ‘time in the market’ involves adopting a strategy where you refrain from attempting to predict the market’s peaks or troughs (timing the market) Instead, you invest in the market with the understanding that your timing might not be perfect, but ultimately, the underlying fundamentals outweigh the importance of perfect timing.”
It can definitely make a difference. Each investing platform or trading app will structure its fees in a variety of ways.
With some platforms, a commission fee will be charged when you buy or sell an investment. This makes selling your shares more expensive with certain brokerages.
What often matters is where you’re buying the shares in the first place, because that will likely be the place you’ll eventually sell them – although it is possible to transfer your shares over to a new provider.
It’s worthwhile to do plenty of research to make sure you’re set up with an affordable brokerage account before you start investing.
To make comparing even easier we came up with the Finder Score. Costs, features, ease and range of investments across 30+ platforms are all weighted and scaled to produce a score out of 10. The higher the score the better the platform – simple.
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"The most important thing to think about is why you want to sell your shares in the first place. Whenever you plan to make a trade, whether to buy or sell, it’s crucial to have a clear plan and an understanding of why you’re taking a particular action. For most long-term investors, you’ll do a lot more buying than selling when it comes to stocks.
There’s no perfect reason to sell your shares, but make sure you’re not making a knee-jerk reaction due to the volatility that comes along with stock market investments. So take some time to think about why you want to sell your shares and if it’s the best long-term move for your portfolio."
There’s no perfect time to sell your shares. It’s all about how it fits in with the rest of your portfolio and investing goals. Setting yourself up with a cheap brokerage account can reduce costs and ensure you don’t pay more than you need to when the time comes to exit your position.
Before selling stocks or shares, ask yourself if you’re acting in line with your long-term financial goals. It’s best to avoid panic-selling. Equally, it is not a good idea to hold onto a floundering stock simply because you don’t want to sell at a loss. Try to keep emotions out of the equation and focus on what matters: your expectations for the company and your personal financial goals.
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