Buying and selling shares can be a minefield if you don’t know what you’re doing. Research is key to any successful share selling tactics. Before you start is always important to do as much resource as possible. Reading material such as the Back to Basics beginners guide to Share Dealing form Interactive Investor which gives you a step but guide to would be investors.
Below is a quick guide on how to sell Shares as a new investor.
If you’re going through a broker who would be considered an expert in how to sell shares, your shares will probably be held in a ‘nominee account’ and you will have to sell them through the broker you originally bought them from (you’ll have to pay a fee if you swap to another firm). That said, the cost effective way to buy and sell shares is by having an online account and not through a broker who will more than likely charge a significant commission from the start.
If you have a certified account – where you have the paper share certificates, selling your shares will take a little longer as you will have to send them to your broker. If you prefer the traditional method do try to factor in the time when you sell the shares as physical paper shares have more paperwork to fill out.
Timing is everything. Work out what sort of realistic profit you’d like to make, then stick to your strategy and sell. If your price drops around 30%, you can conclude that your initial decision to buy wasn’t good but it’s always important to spread yourself across the market to ensure any losses are covered by calculated gains.
Your stockbroker might be ‘execution only’ which means they’ll do what you ask them without offering any advice. If you feel you may need help and guidance, always try to seek advice from another broker or other successful investors.
You can sell shares over the phone or by post, but you will probably be charged a fee. It’s easy and convenient to sell online and some brokers even offer an app.
Don’t forget to factor capital gains tax which could have the potential to reduce any significant gains.