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How to know when to sell half of your shares

by , 25 June 2015

You invest on the stock market to make money. So when an investment goes particularly well, it's a really good feeling.

But when an investment goes really well, it can also make you nervous. What if the stock takes a turn for the worse and you have nothing to show for it?

So what's the best way to handle an investment that's done really well?

Read on to find out…


What you should do when an investment puts in an excellent performance


If you own shares, chances are you periodically check their performance. You want to know they’re rising in price and your decision to invest in the first place was the right one.

When one of your investments hits triple digit gains, you’ve made your money back. So what should you do?

Should you hang on in the hope the shares will keep rising in price? Should you sell your holding and bank your gain? Or is there another option?

One way to handle gains once they hit 100% is to sell half your holding, Dr Steve Sjuggerud in Daily Wealth explains.

So what is the point in doing that?


An investment strategy that protects your capital


Once an investment reaches 100% gains and you sell half your shareholding, there are a number of benefits…

  • You have got your entire initial investment back;
  • You’ve lowered your investment risk; and
  • You’re still letting your winning stock run.

By sticking to an investment strategy like this, you’re pocketing your gains. After all, until you sell, you don’t realise any gains.

You control your risk, but still have the opportunity to make more money if the share continues to rise.

And you remove your emotions out of the trade as none of your cash is at risk any more. You’re letting your gains work for you.

So there you have it. How to know when to sell half of your shares.

*********** New release ************

I want to show you how to create multiple income streams for yourself

When most people think of extra income they think of athletes and actors who get endorsement and advertising deals.

But the truth is that anyone can create extra income streams. You don’t need well-placed connections. You don’t even need to be especially smart.

All you need is the willingness to invest a little extra time in learning about your options – and then invest a little more time and some money pursuing them.

If you believed the myth about getting a good education, finding a good job, and moving up the company ladder, this is a good time to disabuse yourself of that notion. If it hasn’t worked for you so far, it’s not likely to work for you in the future.

Yes, you can live a comfortable and perfectly satisfying life that way. (So long as the company you work for stays healthy.)

If you are more ambitious than that, you should read Fast-track Millionaire.

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How to know when to sell half of your shares
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