Investing is a way of making money. You buy something; stocks, bonds, property or even precious metals like gold would do. Basically, you are putting money into something that could potentially increase in its value. Then you sell it. The problem is; how do you know that it’s time to make a return on your investment? Keep reading for some great tips!
There are plenty of fun phrases about making money, but none of them give you substantial information about how to go about it. Sure, you sell when it’s in your best interest.
But what happens when the market price keeps fluctuating?
When you buy an investment but are in doubt about the best return that you could get?
In order to answer the question; when is the best time to sell my investments? You need to consider a few things including;
- The kind of investor you would like to be.
- The reason behind your investment.
- What you hope to gain.
- What can you realistically make?
The answers to these questions will require some thought. You need to have some guidelines that help you to understand when to sell up and move on. To help you along, try procuring some independent investment advice Bournemouth from the professionals! Just remember, while investing is personal getting some guidance never hurt anyone!
Here are a few reasons why people decide to sell their investments:
1) Its time!
Some investors may adopt a rules based approach. In such cases, it’s important to discipline yourself to stick by their chosen process. Doing so may not always feel right, but it can pay off in the long run.
2) A better opportunity came their way
Investments are all about opportunities. The price of gold drops, the real estate market soars. Both of these examples present better opportunities for investors, especially if their investments aren’t paying off. It’s a good idea to keep an eye on possible investment opportunities, comparing them to your current holdings to give you an idea on where you stand. Just remember to take the cost of the transaction and the applicable taxes into account when making this opportunity.
3) They met their targets
Investors may have a valuation target. They will make an estimate on the value of an asset class; so that they know when to trade their investment.
4) They are trying to rebalance
A systematic way of investing, rebalancing is a form of risk management. It allows you to realign the weightings of your portfolio, periodically trading to maintain a desired level of assets. If the investor has chosen this technique, it will tell them when to sell.
5) Its personal
There are times when the investors circumstances change and they need to sell up. These situations can be very personal and include;
- A need for money
- A decision to cash it all in before retirement.
- A change in their risk profile.
- The investment isn’t working out.
This is just a few of the situations in which people decide to sell. If you are in doubt, try contacting a professional for some independent investment advice Bournemouth.
In the end, the whole process is dependent on the individual. Try to think very carefully before selling your investments, and get advice from the professionals. You don’t want to regret your decision on a later date; having all the facts will help you to make the decision that’s right for you!
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