My strategy is to buy and hold, however in my month using Freetrade, I’ve already sold a number of times. And whilst I have made a profit each time, I’d have made much more by holding.
I should preface this my saying I’m probably doing what most people would do monthly, but on a compressed schedule, so trading daily rather than monthly. I transferred a big chunk in to use last years ISA allowance, but I’m worried about a possible imminent crash, so I’m dollar cost averaging in each day. I also know that this is likely to be a bad strategy if the market doesn’t crash in the time frame I’m doing this over, “time in the market > timing the market”, yada yada.
Some examples: I have ESTC as one of my buy-and-holds, but the price can often fluctuate by 5% in a day. So, if it’s dropped a lot on one day, I’ll buy quite a bit more and then offload it when it’s higher. But actually, all that then means is I end up rebuying a week or so later for more than I sold it at, when I need to buy more to maintain my target %age in my portfolio. I also spotted TSLA at a really low price a couple of weeks ago, but I don’t want to keep TSLA because I think it’s massively overpriced (even at what I bought it at, so I don’t want to keep it, but I also believed the price would go up short term as it’d dropped by over 10% that day).
Those shares of ESTC, I’ve e.g. bought at 108 and sold at 113, bought at 115 and sold at 120, bought at 120 and sold at 128. It’s now sitting at 124, so I’ve still made profit overall by doing that (i.e. the shares I sold at 128 earned more than if I sold now), but actually I’ve lost out by selling other shares at 113, 120 that are now worth 124. So, I think holding is the best strategy if it’s a stock you like.
On the TSLA, I bought at 598 and got rid of it at 640 and was pretty pleased with myself. However, now it’s at 744 that move doesn’t seem quite so smart.