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What Are the Best Tips for Selling Shares Online?

Alex Newth
Alex Newth

When selling shares online, investors want to make sure they get the best out of their investment. Investors should not sell their best shares, because these shares may have a better growth potential and incur higher tax fees if sold. An advantage to selling shares online is that investors can set a target price limit for shares to avoid loss. Selling a share that has experienced rapid appreciation is usually a good idea, because these shares can quickly tumble back to their original value. Emotions should be avoided when selling shares, and one should always know how to make a trade or purchase when he can't quickly access his account from his desktop or laptop computer.

For starters, one should know how to monitor his account and make trades or purchases even when a computer isn't readily available to provide the online connection. Many cell phones have Internet access that would allow portable access to online trading accounts. If a trader's Internet connection is down at a crucial trading time, the person may be able to use a regular telephone or fax machine to place a buy or sell order.

Online and mobile trading have become common.
Online and mobile trading have become common.

Many new investors believe it is best to sell shares that are performing well, because they will make more money from the sale. It is usually best to sell underperforming shares, however, because this will result in less capital gains tax. When investors sell shares, they are taxed on the profit gained from the sale; more profit on sales means more money owed in taxes. Shares that are performing well also may continue growing, providing even more benefit down the road, though this cannot be assured.

One of the biggest advantages to selling shares online is that investors do not need to rely on a brokerage firm to sell shares at a certain price. Investors are able to set a minimum and maximum price for each share so, if the share experiences a certain amount of loss or gain, it will be sold automatically. Aside from not having to pay a brokerage firm to perform this same duty, investors who use this feature while selling shares online can help ensure that they will have minimal losses.

Investors who are selling shares online should consider selling shares if they experience rapid appreciation. If shares shoot up 60 points, for example, it may be wise to sell while the shares are performing well. These shares may peak and fall at any moment, meaning investors may miss making a large profit from the appreciation. While some investors may want to wait to see if the price will go any higher, investors who sell immediately are guaranteed to make a profit.

Emotions and selling shares online typically do not mix well. If investors hold shares just because they like the company or hope the shares will perform better, then they tend to experience losses. Investors should be all business when selling shares and should sell shares that are underperforming before they turn into losses. One also shouldn't get so caught up in the buying and selling that he loses track of what he's done. If there's any question about whether an order went through, an online trader should confirm it before doing anything else, to prevent a duplication of transactions.

Discussion Comments

anon310613

Do we have online answers in our regional language of telugu?

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    • Online and mobile trading have become common.
      By: Lusoimages
      Online and mobile trading have become common.