Knowing When To Sell

[stevier95]

I know we're not allowed to offer financial advice, but what do you base your decision to sell on?
Currently holding NAB, which today hit a 5 year high of $34 and have been holding since above $22.
Contemplating selling, however i do still believe it has potential to go even higher although i am expecting a slight retraction sometime soon. Maybe selling now and buying in again when it's a bit lower in price isnt a bad idea?
What are everyones thoughts?
What would you do in this situation?

 

[burglar]

... What would you do in this situation?

When is dividend day?

 

[sydboy007]

In a similar situation to you. Starting to think I should sell my SGN NAB ANZ shares as they've all had very hard runs over the last few months. Then again I was thinking to sell out of NAB at 31 then 32 then 33 and now at 34.

Only prob with selling out and buying in at a lower price is how much you will lose in CGT?

IF you're purchase price was $18 and you sell at $34 then you've got a CG of $16 if you're in the 30% tax margin then you'l be up for 15% tax on the gain.

So the question to ask yourself is do you think the shares will fall by more than 15%. If not then the CGT event will cost you more than you'll gain by buying in cheaper

Now if you have some shares under water you could use them to reduce your tax bill.

 

[stevier95]

When is dividend day?

End of May.

In a similar situation to you. Starting to think I should sell my SGN NAB ANZ shares as they've all had very hard runs over the last few months. Then again I was thinking to sell out of NAB at 31 then 32 then 33 and now at 34.

Only prob with selling out and buying in at a lower price is how much you will lose in CGT?

IF you're purchase price was $18 and you sell at $34 then you've got a CG of $16 if you're in the 30% tax margin then you'l be up for 15% tax on the gain.

So the question to ask yourself is do you think the shares will fall by more than 15%. If not then the CGT event will cost you more than you'll gain by buying in cheaper

Now if you have some shares under water you could use them to reduce your tax bill.

Interesting way to look at it. Unlikely they'll fall 15% but who knows.
NAB is a share that i could envisage myself holding for the very long-term as i believe they have some strong fundamentals and good opportunities for future growth, however i feel that maybe I should secure my profits and buy in again when they drop (whether it be in a month or a years time).

 

[burglar]

End of May.




Interesting way to look at it. Unlikely they'll fall 15% but who knows.
NAB is a share that i could envisage myself holding for the very long-term as i believe they have some strong fundamentals and good opportunities for future growth, however i feel that maybe I should secure my profits and buy in again when they drop (whether it be in a month or a years time).

I sold at $28
I was hoping for a sizable dip to buy back in,
in time for the divvy!
That's not going to happen.

I have an accumulated loss at the ATO,
so the CGT is zero for me, at this time.

Sometimes you read it all wrong.
Despite all that, I am still content.

 

[burglar]

... So the question to ask yourself is do you think the shares will fall ...

Thank you sydboy, ...
A thoughtful post!

 

[So_Cynical]

Why not just sell half or a higher percentage of your shares, go back in on the next dip or go into one of the out of favour sectors....the market is a 2 edged sword.

I sold out of IAU for $0.29 in Feb 2009 made a 19% profit after holding for a little over a year
https://www.aussiestockforums.com/forums/showthread.php?t=6392&page=3&p=406371&viewfull=1#post406371
IAU went on to hit a high of $2.20 in early 2011, now its 26 cents again.

Sometimes they go higher, sometimes they don't, sometimes they come back to visit new lows..i have a policy of risk reduction, make money, take most of it out and let the rest ride..if and when it turns into a triple figure winner, reassess.