Selling shares for the first time can be incredibly daunting. Some may feel consumed by anxiety mulling over the many “what ifs” associated with buying and selling shares. “What if I make a bad decision? What if the market goes up/down after I decide to sell my shares? What if I’m not even sure how to sell shares?”
While some people may enter the share market with a definite plan in mind, many others fall into the category of “accidental investors”. Perhaps you’ve been bequeathed a share portfolio, or your employer gifted you some shares as a Christmas bonus. Regardless of how you came to have the shares, sooner or later you’ll need to sell them. But don’t panic. Anyone (even a total beginner) can sell shares successfully if they keep some basic principles in mind.
To help you get started, we’ve compiled these 5 great tips to help you sell shares:
When you first discover that you’re the owner of a share portfolio, it can be easy to get swept up in some unrealistic expectations (blame Hollywood for that). You may start to envision making an easy million on your very first share trade and pretty soon you’re swept up in daydreams of what you’ll name your first yacht…but, to be honest, this isn’t a realistic expectation. You may have heard the expression “there’s no such thing as easy money” and this plays true when it comes to buying and selling shares. Keep your expectations reasonable and you’re more likely to be satisfied with the final result.
Acknowledge the Uncertainty.
According to the Australian Stock Exchange (ASX), in the 4 years leading up to 2016 the share market went down 54%, then up 60%, dropped by 25% and then climbed back up by 13%. The point is, the stock market is incredibly volatile. Just because your shares are worth a lot today, it does not necessarily mean they’ll be worth the same amount next year, next month or even next week. Acknowledging this uncertainty will help you to avoid unnecessary disappointment.
Try to Stay Humble.
As a new investor, the more information you absorb the better equipped you will be to make decisions relating to the sale of your shares. Take the time to read online blogs, discuss shares with an experienced investor or consult with a knowledgeable stockbroker. But try to remember that, regardless of how much research you’ve done, you are still new at this. You may make mistakes, and that’s ok – everyone does. The important thing is to stay humble and view each step as a learning opportunity.
Keep your Emotions in Check.
There’s nothing that quite stirs the emotions like the prospect of gaining or losing money – the trick is to try and stay balanced and avoid making decisions based on these emotions. So, don’t feel like you have to stick with the same broker your family has been using for the last 3 generations (even though they stopped making you money 5 years ago) and don’t feel pressured to either buy or sell shares based on the opinions of your friends or family.
Seek Help from Experts.
It’s probably no surprise to hear that selling shares can take numerous different forms. For example, selling shares from a deceased estate requires a different process than selling demutualised shares. And if you’re looking at a ‘one off’ share sale then it may not be worth the time and effort of opening your own share account. To make things simple and to ensure the sale is handled correctly, it’s best to engage the services of experienced professionals with a proven track record of success.