This goes against everything our great overlord Buffett taught us with his buy and hold strategy. Somebody was giving me investment advice and they said that I should regularly sell my profits, then instantly buy back in to the same stock to “lock in the gains”. And I should ideally do this foreve…

[image] dMLT: I think he means sell to lock in profits and then buy the dip: No I didn’t mean that but if you could time that, that would be great. That is very difficult though. See my example on Kodak right above your post for what I meant! I’m talking about taking wins when they come. And…

Pipo, you can do whatever you want. Your money but whoever that person is, they are spewing bullcrap.

Have you bothered reading the full thread? The person in question has responded and set the record straight.

I don’t see how this is any of your concern?

[image] obrienciaran: The reason is, when unexpected gains come, I think it is best to take the CGT hit, realise the gains and add it to your principal. This only makes sense when you don’t use your principal to buy back the same stock at the same point.

You can’t sell/buy back a stock to raise the average book cost to take advantage of any free capital gains allowance that you may have, as you have to wait a minimum of 30 days due to the ‘bed and breakfast’ rules. If you sell/buy back a share within 30 days, the sale is essentially null and void f…

If wishing to maximise use the of UK annual £12,300 tax free capital gains allowance then it can be a good trick to switch between equivalent investments and lock in gains for tax. Suppose I own 422 shares of VUSA S&P 500 ETF and have a gain of £4000. I can sell these shares and immediately buy 804…

[image] Dougal1984: If you sell/buy back a share within 30 days, the sale is essentially null and void for cgt purposes. This is correct. But note that the reverse of “buy/sell back” is OK. Suppose I own 100 AAPL in which there is gain of £3000. I could buy an additional 50 on Monday. As Tue…

I was told that I have to constantly sell my stock then reinvest it to "lock in" profits. Is this true?

📊 Investing

obrienciaran October 21, 2020, 10:36pm 84

That’s at the discretion of the person themselves whatever they want to do with their earnings!

Taking some profit back

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I was told that I have to constantly sell my stock then reinvest it to "lock in" profits. Is this true?

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