Really sorry if this sounds like a dum question, but I just need to know.
Ok so I purchased 400 pounds of rolls Royce stock and its 5% up which is quite a decent amount up for my first share, my question is should I sell the 5% gain of RR shares and reinvest into another stock or back into RR or just keep it going with RR…
I’m only asking this because I few of my other shares have gained % and then gone into red a day later. Do you prevent this loss of % by selling of your gains or dose this have a negative effect? long term/shortterm?
That is only a decision you can make there is no right or wrong answer.
If you like the company and believe its under valued or will create more value then keep it but thats a decision only you can make.
And it depends on the risk you are willing to take, sometimes it pays off and you get more and sometimes not, I have been on the receiving end of both.
For example i invested in Vodafone and losing a fair amount but for me its not the share price i care about as that will go up eventually if not assets are worth more than debt and is a great dividend payer.
yet on the reverse side PodPoint as had a really big nosedive in value but hope they will rise significantly over time as one of the if not the biggest electric charging companies and i believe they could do well so have brought some in speculation.
And on the other side I brought Vertu shares and topped up even more as so far my faith in the business has proved to be right I am sitting on about 40% profit but i believe there is way more value to come.
At the end of the day its all about how much risk your willing to take and your faith in the business and only you can make that decision as each persons risk level is different.
This is more or less what I was thinking myself, I went with the stock in the end and kept it going. I’m pretty sure RR has more to give as it’s still a good buy. I’ll watch to see what happens Monday and go from there.
Thank you for taking the time to respond and give solid feedback. I’ll look into your mentioned shares too hehe.
I was trading Rolls Royce and it is still a good one to trade, however my strategy on it now is to hold and buy. I did slate the company last year, with the huge debt and no real path to profitability, however developments recently are looking to the upside for now.
I expect it could drop again but i will just keep buying. Its one of the very few FTSE stocks that i own and plan to hold longterm.
The above doesnt answer your question but thats how im playing things with Rolls Royce.
I know what you mean - I’m going to do the same. I’m pretty much feeling confident that they will rise more. I’ve also got a good chunk of my shares with Howdens. Wishing you a green day
Buying stocks is boring. What I mean by this. You look into the business deeply. Their annual reports expected growth, reasons for loses. If you are happy you then can watch the stock for a few months or buy it outright.
Once you brought a stock you need to forget about it for 5 years bear naked minimum; ten years is the ideal minimum. 20 years plus is the sweetspot.
It is concerning that you want to sell so soon. Businesses need stability and for you personally it the quickest way to loose a lot of money.
I would invest in the S&P500 and other index funds to start with if I was you.
Also only invest small amounts monthly, to add an extra layer of safety. It called Pound-Cost-Averaging (Your currency-cost-averaging)
The S&P500 or some other index fund should be the largest part of your portfolio. For me, it is the S&P500. I am currently all index funds. I only have independent shares in two corporations. I will most likely invest in other corporation as times moves on… Great care is needed.
If you feel a rush or excited, see that as a warning sign that something is wrong. It not a get rich quick scheme.
But have fun. Investing is fun… Be wise when it comes to all things financial.
