This is the continuation of my previous post, DOING ONLINE STOCK TRADING - BUYING, wherein I explained how I buy some shares of a certain stock (XYZ as a sample stock code) with my start-up funds of 5000 pesos. Let's say after buying my 9000 shares of XYZ and it has finally reached my TP (target price) of 1.00, I decided to sell my shares.It will be either I will sell all my shares of 9000 or only a part of it say for example only 3000 shares. Remember that I was "able" to buy my 9000 shares of XYZ at 0.50 and now its price climbed to 1.00 (a gain of almost 100%). I say almost 100% because the price wherein I was able to buy the 9000 shares has some charges (very small) also when I sell my shares, there will be some charges again but also small. You may check what brokers will deduct and by how much in the website of online brokers mentioned in my previous post ONLINE STOCK BROKERS.
Proceeding to my topic, in my online broker FMS they are showing my stocks "paper gain" in my portfolio already with the commission charges and tax already deducted. So what I will see in the column of Profit is already my clean profit once I sold my shares. Okay, so my final decision at the moment for my XYZ shares is that I will only sell 3000 shares from my original shares of 9000 shares because I "saw" that it's price still has a tendency of going past 1.00.
Just like in my previous post,DOING ONLINE STOCK TRADING - BUYING, when I want to sell my shares I will just open the same window that I used when I bought my XYZ shares. the only difference is that I will tick the sell button. Of course your selling price should be a reasonable one, not too high so that it could be hit. Once I finish posting my sell, I will just wait for it to be done.
It is very easy to buy and sell stocks! But WE HAVE TO EXERT MORE EFFORT ON CHECKING AND STUDYING WHICH STOCKS WE HAVE TO BUY FOR OUR INVESTMENT. It will depend on our appetite for RISK. Do you want a low risk but low reward or a high risk but high reward?
Always use only your free cash and set aside something for emergency fund....
NEXT: CHOOSING MY FIRST STOCKS