pernickety
Registered User
- Messages
- 175
If the new share falls by €350.if i cash this in and buy another share i think is good value, how could i be a loser?
Why not just cash in when you need the money and not as some sort of self churning exercise?maybe this is a slippery slope but i don't think so. if i sell a share when i feel it's doing well (ok it could go on to do better but who knows?) aren't I just cashing in on the high? If i go on to buy a share that does badly, I'm not bothered cause I'm holding on for the long-term anyway.
The problem is that many people apply this over the short term so end up consistently selling low and buying high.Hold your winners and sell your non performers.
The problem is that many people apply this over the short term so end up consistently selling low and buying high.
Better, in my opinion, to diversify over a reasonable (according to your specific circumstances) range of asset classes, risk/reward profiles, geographic regions etc. and then hold them for the long term and sell when you need the money. Along the way you may need to perform some rebalancing but reacting to short term volatility is usually a recipe for disaster/losses.
I think that if the OP started trading in the autumn, and he's looking to cash some of his shares in now, that we can assume that he's a short term investor.
Few if any people can consistently pick winners and beat the market average. Buffet et. al. are probably one of the exceptions but if you read his reports you will see that they do an awful lot of research/analysis before investing, tend to buy whole companies and run them for the long term in close cooperation with the management, and they do sometimes pick duds. Few individual retail investors would be in a similar position as Buffet/BH etc.i suppose i'm talking about long-term but taking out and putting in ONLY when i'm winning.
Nobody because nobody can predict the future. It's only a good, bad or indifferent move in retrospect.if i own stock X that has earned me 350 euro and sell it and put the money back into stock Y, who's to say that it's a bad move?
If you have a failsafe formula for always only making gains then well done. But I doubt it.If i ONLY sell when i'm winning, and am ready to hold on long-term to the losers, am i losing?
If you have a failsafe formula for always only making gains then well done. But I doubt it.
Don't forget to factor in the cost of disposal and acquisition expenses (including stamp duty) and the need to record CGT issues each time you trade.Of course it depends what i go on to buy i know.
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