When is the Right Time to Sell Your Shares?

Going back to 2012 and JJB Sports collapsed into administration (Julia Kollewe, The Guardian).

When do you learn how to sell shares at the right time? In my experience, you don’t as you haven’t got a crystal ball.

Me and Single Shares 

I have failed miserably with single shares. I would try to avoid single shares if you are emotional like me. In my experience, you can lose all or most of your hard-earned money.

I can’t stress enough how important it is to understand your relationship with money. I would have done something about it much earlier but I was clueless.

This type of investment doesn’t suit me as it brings out my inner gambler. I also got too emotional and used to check them constantly.

For example, in my late 20s when I lost approximately £8,000 on shares. I had a gamble on the strength of what the lads told me when I first started offshore. This was without any research. Do not invest without doing your own research. 

When the Greed Kicks in

After some serious research, a share I really fancied was JJB. All in all, I done about 30 minutes of research as was the norm during that time.

I can’t remember the dates, but I do remember the value the shares went up to.

The price I bought in at was 4p and I spent £2000. I spent 6 months obsessing over it and checking the price every single day.

I think the highest it went to was 50p and my balance was around £25,000. My thinking was that it would get to £1 and that I would cash in at around £50,000. There are no educated decisions here and it is pure stupidity and greed.

I bought the shares at 4p (worth £2000), they went up to 50p (worth £25,000) and went down in spectacular fashion to 0p (worth nothing).

Obviously, £25,000 is a massive amount of money and this was a painful experience. This money would have meant the world but money and me really didn’t get on.

In conclusion, if you do invest in single shares be prepared to lose it. This is not a half empty mentality it is just common sense and a bit of self-preservation. Expect the worst and hope for the best. Do not invest thousands of pounds (your hard-earned money) on the strength of a tip you get down the local pub.

https://www.theguardian.com/business/2012/sep/27/sports-direct-deal-buy-jjb-sports-stores

Photograph: David Moir/Reuters (The Guardian)

 

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