A portfolio of multiple investments will have some winners and some losers. The ones that do poorly like, ERF and WHZ, we have to deal with and manage. Evaluate if any changes are to be made and if we decide to sell we sell and take our lumps.
The other side though is our winners. Our investments that do well and will make enough profit to make up for our losses. Right now for me that is OHI, HAS, and ARCP. If you look at their charts..... beautiful. I'm enjoying their rise but just like having to manage our losers we have to manage our winners. Make sure we don't give up their gains and they turn into losers. For capital gains investing I would look to lighten up on take some profits. Since these are dividend investments where the goal is income I'll keep them. If they continue to climb... well there is a point where I'd sell and move on to the next dividend play.
Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.
The other side though is our winners. Our investments that do well and will make enough profit to make up for our losses. Right now for me that is OHI, HAS, and ARCP. If you look at their charts..... beautiful. I'm enjoying their rise but just like having to manage our losers we have to manage our winners. Make sure we don't give up their gains and they turn into losers. For capital gains investing I would look to lighten up on take some profits. Since these are dividend investments where the goal is income I'll keep them. If they continue to climb... well there is a point where I'd sell and move on to the next dividend play.
Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.
The problem for me has always been to define the point to sell. I am using a DGI approach since roughly a year now and I sold BAMXF.PK at the end of last year and still continue to hold everything else I ever bought.
ReplyDeleteAll my positions from 2012 are decent winners (10%-50%), while the positions I established in 2013 are moderate losers (-3%, -5%). The problem for me is to identify how much of that performance is actually attributed to buisness fundamentals rather than overall economic/political conditions and overall market sentiment. Currently I am only willing to sell once the buisness fundamentals of the individual stock start to detoriate ... but then again this is probably a lagging indicator and will not allow me to sell prior to a sell-off.
Would be nice if you could elaborate on your selling criteria (especially for winners ... how much "overvaluation" do you tolerate before selling?)
Kind regards,
troubled
Well once I figure out my selling criteria I will let you know lol. Seriously though... I hear you on not sure when to sell. Most often, say 80% of the time, I sell when the company fundamentals have changed. I have a hard time selling a solid well managed and in demand company when it gets overvalued. My fear is I sell it and then I wait for it to become undervalued and it never happens.
DeleteForex is all about risk analysis and probability. There is no single method or style that will generate profits all the time. The key to success is positioning ourselves in such a way that the losses are harmless, while the profits are multiplied. Such a positioning is only possible by managing our risk allocations in accordance with an understanding of probability and risk management.
ReplyDeleteForex is all about risk analysis and probability. There is no single method or style that will generate profits all the time. The key to success is positioning ourselves in such a way that the losses are harmless, while the profits are multiplied. Such a positioning is only possible by managing our risk allocations in accordance with an understanding of probability and risk management.forex
ReplyDeleteI do enjoy run-ups in stock. I totally agree with avoiding winners become losers. I equally enjoy stocks that tank because I get the opportunity to cost-average down on my shares.
ReplyDeleteI recently sold O because I think it is overvalued. The decision was helped by the fact that I had my eye on another company, which I believe to be undervalued.
ReplyDeleteIf O were to decline (like 20%+) I would definitely be back in ... but I dont see that happening in the near future.