I am about to invest in some shares for the first time. I am wondering how people decide how long to invest for (a month, a year etc.) and at what point do they cut their losses/profit and sell? Any advice, theories or strategies would be greatly appreciated.
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- Thread starter Bryan99
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Brendan Burgess
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Bryan
Please respect the Posting Guidelines and make the title of your thread meaningful.
Brendan
Please respect the Posting Guidelines and make the title of your thread meaningful.
Brendan
When I need the money for something.
silvamuppet
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Depends on your reasons for investing. As clubman says, cash in when you need the money (assuming that you are saving for something). If you are in for a longer goal (ie extra income upon retiring etc etc) then you get in when the shares are undervalued and out when they're overvalued.
Plenty of very good books available on that subject. On this point remember to have a bit of cash on the side for a rainy day as in this case you do NOT want to cash your shares in cos you need the money.....you don't want to ever be a forced seller as you could end up cashing in a good stock at the wrong time.
With regard to losses, if you are invested in a stinker and it doesn't look like getting better then get out, take your tax loss and then use it to offset against gains elsewhere (in this game a loss doesn't need to cost you....per se).
Nobody on this forum can really tell you when to get in and out of a stock. There is a fair amount of experience involved here (and remember, some of the best lessons you will get are from your own mistakes....main thing is not to get put off). With regard to strategies there are a fair few on the go and everyone has the one they swear by. Do your homework (ie read up some of the very good books out there ) and find what works for you and your risk profile.