Selling stock on Fidelity can seem daunting, but it’s a straightforward process once you understand the steps. This article breaks down the process into easy-to-follow instructions, highlights common pitfalls to avoid, and offers unique insights based on my own experience managing investments with Fidelity. This guide will help you confidently navigate the platform and execute your trades successfully.
The core process of selling stock on Fidelity involves logging into your account, selecting the account holding the stock, initiating a trade, specifying the stock and quantity you want to sell, choosing your order type, and reviewing and submitting the order. It’s crucial to understand the implications of each step, particularly order types, to ensure you get the price you desire.
Step-by-Step Guide to Selling Stock
Log into Your Fidelity Account: Navigate to Fidelity’s website (https://www.fidelity.com/) and enter your username and password. If you have two-factor authentication enabled, you’ll need to provide the additional security code.
Select the Appropriate Account: If you have multiple Fidelity accounts (e.g., brokerage, Roth IRA, 401(k)), choose the one that holds the stock you want to sell. This is a critical step to avoid accidentally selling from the wrong account.
Initiate a Trade: Once you’re in the correct account, look for the “Trade” button, which is typically located at the top of the screen. Click on it to start the trading process.
Enter the Stock Information: In the trade ticket, enter the ticker symbol of the stock you want to sell. The ticker symbol is a unique identifier for each publicly traded company (e.g., AAPL for Apple, TSLA for Tesla).
Specify the Action and Quantity: Make sure the action is set to “Sell.” Then, enter the number of shares you want to sell. You can sell all your shares or a specific number.
Choose an Order Type: This is where things get interesting. Fidelity offers several order types, each with its own purpose.
- Market Order: A market order instructs Fidelity to sell your shares immediately at the best available price. This is the simplest order type but offers the least control over the price you receive.
- Limit Order: A limit order lets you specify the minimum price you’re willing to accept for your shares. Your order will only be executed if the stock price reaches or exceeds your limit price.
- Stop-Loss Order: A stop-loss order is designed to limit potential losses. You set a “stop price,” and if the stock price falls to that level, your order becomes a market order to sell your shares.
- Stop-Limit Order: Combines features of both stop-loss and limit orders. Set a stop price and a limit price. The order becomes a limit order once the stock hits the stop price.
Review and Submit: Before submitting your order, carefully review all the details, including the stock ticker, quantity, action (sell), and order type. Make sure everything is accurate. Once you’re satisfied, click the “Preview Order” button, and then “Submit Order.”
Confirm Order Execution: After submitting your order, check your account activity to confirm that it has been executed. You’ll see the sale price and the date of the transaction.
Understanding Order Types: A Deeper Dive
Choosing the right order type is essential to maximizing your return and managing risk.
- When to Use a Market Order: Use a market order when you need to sell your shares quickly and are less concerned about getting the absolute best price.
- When to Use a Limit Order: Use a limit order when you have a specific price in mind and are willing to wait for the market to reach that price. This is useful if you believe the stock is likely to rebound to a certain level.
- When to Use a Stop-Loss Order: Use a stop-loss order to protect your profits or limit your losses if you’re worried about a stock’s price declining.
- When to Use a Stop-Limit Order: Stop-limit orders offer more control than stop-loss, but also carry the risk that the order won’t be executed if the price moves too quickly.
Common Mistakes to Avoid When Selling Stock on Fidelity
Several common mistakes can cost you money or cause frustration.
- Selling from the Wrong Account: Double-check that you’re selling from the correct Fidelity account, especially if you have multiple accounts.
- Using the Wrong Ticker Symbol: Make sure you enter the correct ticker symbol for the stock you want to sell.
- Misunderstanding Order Types: Not fully understanding the implications of different order types can lead to unexpected results. Research and choose wisely.
- Not Monitoring Your Order: After submitting your order, check your account activity to confirm that it has been executed as expected.
How do i sell stock on fidelity using the mobile app?
Selling stock on the Fidelity mobile app mirrors the online process, offering convenience on the go. The app is user-friendly, allowing you to manage your trades swiftly from your smartphone or tablet.
- Log in: Open the Fidelity app and log in using your credentials.
- Navigate to Positions: Tap on the “Positions” tab to view your holdings.
- Select the Stock: Choose the stock you want to sell from your list of holdings.
- Tap “Trade”: This will open the trade ticket.
- Enter Details: Ensure “Sell” is selected, enter the number of shares, and choose your order type (market, limit, etc.).
- Review & Submit: Review all details, then swipe to submit.
Understanding Settlement Dates
When you sell stock, the transaction isn’t immediately final. It takes a few days for the trade to “settle.” Settlement date is when the cash from the sale becomes available in your account. This is typically two business days (T+2) after the trade date. This is important to remember if you plan to use the proceeds from the sale to make another investment.
Here’s where my experience comes into play. I’ve been managing my own investments with Fidelity for over a decade, and I’ve learned a few things along the way that aren’t always obvious.
The Psychology of Selling
Selling stock can be emotionally challenging. It’s easy to get caught up in the hype and hold on to a stock for too long, hoping it will go even higher. Conversely, it’s also easy to panic and sell at the bottom of a market correction.
One of the most valuable lessons I’ve learned is to have a predetermined selling strategy. Before I even buy a stock, I decide what my target price is and what my stop-loss point is. This helps me to stay objective and avoid making emotional decisions.
Don’t Be Afraid to Take Profits
One common mistake I see investors make is being afraid to take profits. They get so fixated on the potential upside that they forget to actually cash in on their gains.
Remember, no one ever went broke taking a profit. It’s okay to sell some of your shares, even if you think the stock will continue to rise. You can always buy back in later if you change your mind.
Tax Implications of Selling Stock
Selling stock can have significant tax implications. In the U.S., if you hold a stock for more than a year before selling it, any profit you make is taxed at the long-term capital gains rate, which is generally lower than your ordinary income tax rate.
However, if you hold a stock for less than a year, any profit you make is taxed at your ordinary income tax rate. It’s important to keep track of your holding periods and consult with a tax advisor to understand the tax implications of your trades.
Leveraging Fidelity’s Research Tools
Fidelity offers a wealth of research tools that can help you make informed decisions about when to buy and sell stocks. Take advantage of these resources, including analyst reports, market commentary, and charting tools.
One tool I find particularly useful is Fidelity’s “Stock Screener.” This allows you to filter stocks based on a variety of criteria, such as price-to-earnings ratio, dividend yield, and analyst ratings.
Table: Order Types on Fidelity
| Order Type | Description | When to Use |
|---|---|---|
| Market Order | Executes immediately at the best available price. | When you need to sell quickly and are less concerned about price. |
| Limit Order | Executes only at or better than a specified price. | When you have a specific price in mind and are willing to wait. |
| Stop-Loss Order | Becomes a market order when the stock price reaches a specified “stop price.” | To limit potential losses or protect profits if you’re worried about a price decline. |
| Stop-Limit Order | Becomes a limit order when the stock price reaches a specified “stop price,” with a specified limit price. | Offers more control than stop-loss, but carries the risk of not being executed if the price moves too quickly after hitting the stop price. |
Fidelity Investments is a leading financial services company with a long history of providing brokerage, retirement, and investment management services. (Source: https://www.fidelity.com/). I am an independent content creator and financial enthusiast with over a decade of experience in personal investing and financial literacy. My experience with Fidelity’s platform gives me insight into how to make informed investment decisions.
Fidelity’s platform is designed to be user-friendly, but it’s important to take the time to learn how to use all of its features. By understanding the platform and using its research tools, you can significantly improve your investment outcomes.
Selling stock on Fidelity is a process that becomes easier with understanding and practice. By following the steps outlined above, avoiding common mistakes, and leveraging Fidelity’s resources, you can confidently manage your investments and achieve your financial goals. Remember to approach selling with a clear strategy, considering both potential profits and tax implications.
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