Buying and selling shares - when is the right time?

When you embark on investing and buying/selling shares, your success and possible profit depend on you buying and selling at the right times. It can be difficult to know exactly when to press the button to ensure the best conditions for yourself.
It is important to understand that both buying and selling shares depends largely on the market, i.e. how the respective companies and firms are performing at the moment. It is therefore important that you carefully consider your decisions and do not let your emotions control buying and selling - this way you avoid missing out on the best opportunities with your investments.

When is it ideal to buy?

Making the first equity investment can be a big step for new investors, as it can be decisive for the long-term equity strategy. The most important thing when starting to invest is to think about how long you plan to invest money in the stock market.

You need to make sure you make up your mind why you are investing and what you are working towards. Here it is important to have a clear investment strategy that sets your personal framework for your investments. Furthermore, it is important that you have thoroughly researched the market so that you know how the different companies stand and how the market moves.

It is also a good idea to look at various ratios and make yourself aware of which ones can benefit your stock investments.
When a stock becomes available for purchase, it's often a good idea to keep an open mind and wait a while. It can be risky to immediately buy a stock that breaks a downtrend and rises sharply, as this large swing can quickly go the other way as well. Instead, it can be beneficial to wait for the stock to calm down after the initial sharp rise has subsided.

Buying, if you have the necessary patience, can be rewarded in the long run - here it will be possible to buy at an attractive price, which is preferable. This way, the opportunity can be more stable, which is less risky and better for your investment portfolio.

In general, there is no wrong time to start. As a general rule, it is better to be in the market on bad days than to be out of the market on good days. Therefore, with the right preparation, you can start stock investing whenever you want.

When is it ideal to sell?

If you set out to sell your shares, it is important that you know exactly why you want to sell. If you have chosen an investment strategy that dictates when you should sell, it is important that you are clear about why now is the time to sell. There are three good reasons to sell stocks:

  1. You no longer believe in the future prospects of the specific stock
    This may be due to market developments or because the company you hold shares in is no longer delivering what you expected/were promised when you bought it. If you no longer see the stock benefiting you in the long term, selling it to make room for new and better investments may be a solution. However, it is important that you consider this carefully if this is your argument for selling; the stock may rise again and you may regret selling.

  2. You need to free up money for something other than investing in shares
    Selling to free up money for investments other than shares is relatively simple and is about why you bought the share to begin with. It could be that you made the investment so that you could use the returns for future purchases of, for example, property or a car. If your stock is at a stage where the return can help you towards the goal you invested for, it may be an idea to sell.

  3. You want to re-balance your overall portfolio, with no single stock taking up too much
    If a stock has risen a lot since you invested in it, you risk increasing your overall risk by taking up too much. By selling some of the stock, you can rebalance how much it takes up in your overall portfolio to balance your stock investments.

Avoid selling based on gut feelings and emotions.

When selling stocks, it's important not to let your emotions control you. One of the most important things to remember when it comes to buying and selling stocks is that it's all about rational decisions. Here, ratios are one of the most important things to look at.

If you base your sales on a feeling or a gut instinct, it is most likely not a good enough reason to actually sell. If you feel uncertain about a stock investment, it is recommended to sell part or half of it instead. That way, you can overcome uncertainty without deviating from rational strategies.

Keep track of your investments with StoxIQ

With the StoxIQ app, you can keep track of all your investments, in one place. With your personal account, you can find the best times to buy and sell your shares with an optimised investment portfolio tailored to your needs.
All data is in real time and therefore you will be able to make rational, well-considered decisions about your stock investments. Get started today, with StoxIQ.


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