How to Sell Stocks on E*TRADE: A Step-by-Step Guide

Quick answer

• Log in to your E*TRADE account.
• Navigate to the “Trade” or “Order Entry” section.
• Select “Sell” as the transaction type.
• Enter the stock symbol you wish to sell.
• Specify the number of shares and the order type (e.g., market, limit).
• Review your order details carefully before submitting.
• Confirm the trade execution and monitor your account.

Who this is for

• Investors who own stocks through an E*TRADE account.
• Individuals looking to liquidate some or all of their stock holdings.
• Beginners who need a clear, actionable guide to selling shares.

What to check first (before you act)

Goal and timeline

Before selling any stock, understand why you’re doing it and when you need the funds. Are you selling to rebalance your portfolio, fund a purchase, or lock in profits? Your goal will influence the type of order you choose and the urgency of the sale.

Current cash flow

Assess your overall financial situation. Do you have immediate cash needs that selling this stock will address? Understanding your regular income and expenses will help you determine if selling is the right move for your current financial health, or if other resources might be more suitable.

Emergency fund or safety buffer

Ensure you have an adequate emergency fund in place before selling investments. Selling stocks for unexpected expenses can mean realizing losses or missing out on future gains. A readily accessible emergency fund (typically 3-6 months of living expenses) provides a crucial safety net.

Debt and interest rates

Consider any outstanding debts you have, especially high-interest ones. If you have credit card debt or personal loans with high interest rates, selling investments to pay them off might be a financially sound decision, potentially saving you more in interest than you might gain from holding the stock.

Credit impact

Selling stocks generally does not directly impact your credit score. Your credit score is primarily affected by your borrowing and repayment history. However, if you are selling stocks to pay off debt that is negatively impacting your credit, the indirect effect could be positive over time.

Step-by-step (simple workflow)

1. Log in to your E*TRADE account

What to do: Access the E*TRADE website or mobile app and enter your username and password.
What “good” looks like: You are securely logged in and can see your account dashboard.
A common mistake and how to avoid it: Forgetting your password. Set up a password manager or use the “Forgot Password” link proactively if you haven’t logged in recently.

2. Navigate to the “Trade” section

What to do: Look for a prominent “Trade,” “Order Entry,” or similar button on your dashboard.
What “good” looks like: You are on the trading platform where you can initiate buy or sell orders.
A common mistake and how to avoid it: Clicking the wrong button. Double-check that you are in the actual trading interface, not a research or account management area.

3. Select “Sell”

What to do: Within the trading interface, choose “Sell” as the transaction type.
What “good” looks like: The order form is now set up for selling securities.
A common mistake and how to avoid it: Accidentally selecting “Buy.” This is a critical step; always confirm you’ve chosen “Sell.”

4. Enter the stock symbol

What to do: Type the ticker symbol (e.g., AAPL for Apple) of the stock you want to sell into the designated field.
What “good” looks like: The system recognizes the symbol and may pre-fill company information.
A common mistake and how to avoid it: Typos in the symbol. A wrong symbol will lead you to sell the incorrect stock. Use the auto-complete feature or verify the symbol.

5. Specify the number of shares

What to do: Enter the quantity of shares you wish to sell. You can choose to sell all your holdings or a portion.
What “good” looks like: The number of shares entered accurately reflects your desired sale quantity.
A common mistake and how to avoid it: Selling more shares than you own (short selling without intending to). E*TRADE will likely flag this, but be mindful of your available shares.

6. Choose your order type

What to do: Select how you want the sale to be executed. Common options include:

• Market Order: Sells immediately at the best available price.
• Limit Order: Sells only at your specified price or better.

What “good” looks like: You’ve chosen an order type that aligns with your goals for price and speed.
A common mistake and how to avoid it: Using a market order for volatile stocks or when price is critical. This can lead to selling at a significantly different price than expected. For sensitive sales, a limit order is often preferred.

7. Set your limit price (if applicable)

What to do: If you chose a limit order, enter the minimum price you are willing to accept for your shares.
What “good” looks like: Your limit price is realistic based on current market conditions.
A common mistake and how to avoid it: Setting a limit price too high or too low. A price too high may prevent the order from filling; a price too low defeats the purpose of a limit order.

8. Review your order details

What to do: Carefully examine the order ticket. Check the stock symbol, number of shares, order type, limit price (if set), and estimated proceeds.
What “good” looks like: All information is accurate and matches your intentions.
A common mistake and how to avoid it: Rushing through this step. This is your last chance to catch errors before execution.

9. Submit your order

What to do: Click the “Submit,” “Place Order,” or similar button to send your trade to the market.
What “good” looks like: You receive confirmation that your order has been placed.
A common mistake and how to avoid it: Submitting an incomplete order. Ensure all required fields are filled before hitting submit.

10. Confirm trade execution

What to do: Monitor your account’s trade confirmations or order status.
What “good” looks like: The order status changes to “Filled” or “Executed,” and your cash balance reflects the sale.
A common mistake and how to avoid it: Assuming the order filled immediately. Market orders usually fill quickly, but limit orders may take time or not fill at all if the price isn’t met.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Selling based on emotion (fear or greed)	Poor timing, selling low during downturns, or selling winners too early.	Stick to a pre-defined investment plan; use limit orders to avoid impulsive decisions.
Not understanding order types (market vs. limit)	Unpredictable sale prices (market order), or no sale at all if price isn’t met (limit order).	Educate yourself on each order type and choose the one that best suits your needs for speed and price control.
Typos in stock symbol	Selling the wrong stock, leading to unintended losses or gains.	Always double-check the ticker symbol before submitting; utilize auto-complete features.
Selling too much or too little	Disrupting portfolio balance, or not meeting financial goals.	Calculate the exact number of shares needed to achieve your goal or rebalancing target.
Ignoring taxes on capital gains	Unexpected tax bills, potential penalties, and underestimating net proceeds.	Consult tax resources or a professional; factor in capital gains taxes when calculating net profit.
Not having an emergency fund	Selling investments at inopportune times to cover unexpected expenses.	Prioritize building and maintaining a robust emergency fund before selling stocks for non-essential reasons.
Forgetting about fees	Lower than expected net proceeds from the sale.	Be aware of potential trading fees, though E*TRADE often offers commission-free trades for stocks. Check their fee schedule.
Over-trading	Increased transaction costs (if applicable) and a higher chance of making poor decisions.	Focus on strategic sales rather than frequent, reactive trading.
Not checking account balance before selling	Attempting to sell more shares than you own, causing order rejection.	Always verify your holdings and available shares before placing a sell order.

Decision rules (simple if/then)

• If your goal is to lock in profits at a specific price, then use a limit order because it guarantees you won’t sell below your target.
• If you need cash immediately and are less concerned about the exact sale price, then use a market order because it prioritizes speed of execution.
• If a stock has experienced a significant, rapid price drop and you’re worried about further losses, then consider selling a portion with a limit order to mitigate risk while retaining some upside potential.
• If you are rebalancing your portfolio and need to sell a specific amount to bring asset allocations back in line, then calculate the exact number of shares needed and use a limit order to control the sale price.
• If you have high-interest debt (like credit cards), then selling stocks to pay off that debt is often a good decision because the guaranteed savings on interest likely outweigh potential future stock gains.
• If you have a large unrealized capital gain and are concerned about taxes, then consider holding the stock longer to potentially qualify for lower long-term capital gains tax rates, if your investment thesis still supports it.
• If you are unsure about the market direction after selling, then consider holding the cash proceeds in a money market fund or short-term bond fund to preserve capital while you decide on your next investment.
• If you are selling a stock that has been in your portfolio for less than a year, then be aware that any profit will be taxed at your ordinary income tax rate, which is typically higher than long-term capital gains rates.
• If you are selling a stock due to a fundamental change in the company’s outlook, then act decisively with a market order if the situation is urgent, or a limit order if you have a little time to capture a better price.
• If you are selling a stock that is a significant portion of your portfolio, then consider selling it in smaller tranches to reduce the impact of price fluctuations on the overall sale value.

FAQ

How quickly will my stock sale settle?

Stock sales typically settle in two business days (T+2). This means the cash from your sale will be available in your E*TRADE account approximately two business days after the trade is executed.

Can I sell stocks on the E*TRADE mobile app?

Yes, E*TRADE offers a robust mobile app that allows you to log in, view your portfolio, and execute stock trades, including selling shares, directly from your smartphone or tablet.

What are the fees for selling stocks on E*TRADE?

ETRADE generally offers commission-free trading for online stock and ETF trades. However, it’s always best to check the official ETRADE fee schedule for any specific transaction fees or regulatory fees that may apply.

What is a market order versus a limit order?

A market order is an instruction to buy or sell a stock immediately at the best available current price. A limit order is an instruction to buy or sell a stock only at a specific price or better.

Will I owe taxes when I sell stock?

Yes, if you sell stock for more than you paid for it (your cost basis), you will likely owe capital gains taxes. The tax rate depends on whether the gain is short-term (held one year or less) or long-term (held more than one year).

What happens if my limit order price is never reached?

If the market price of the stock never reaches your specified limit price, your limit order will not be executed. It will remain open until it expires (e.g., end of day or good ’til canceled) or you cancel it.

How do I find my cost basis for tax purposes?

E*TRADE provides your cost basis information within your account statements and online. This is crucial for calculating your capital gains or losses when you sell.

Can I sell stocks I don’t own?

No, you cannot sell stocks you don’t own unless you are engaging in short selling, which is a more advanced trading strategy with significant risks and requires specific account approval.

What this page does NOT cover (and where to go next)

• Advanced trading strategies (e.g., options, short selling, margin trading).
• Detailed tax implications and planning for capital gains.
• Portfolio rebalancing strategies beyond simple selling.
• How to choose which stocks to sell.
• International stock trading or accounts.