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clock Created with Sketch. 13/07/14
11:16
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Originally posted by retiredyoung
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Hi zenvestorshort term trader but I still need to have a strategy of when to sell . 'high risk' and 'low risk' .'high risk' businesses, even though I aim to hold them long term or until the reason I purchased them is no longer applicable, I will try to take advantage of any spike in the SP by selling part of my holding, I can always buy them back if the SP falls; if the SP keeps rising then I win with my remaining holding. In the cases where I have sold part of my holding (near the highs) it is also easier to sell some more when the SP goes down and to sell out completely if the SP continues to go down. I also assume that 'Mr Market' knows more than I do and I keep an eye on the volume of shares traded, if the SP is going down on high volume, it is probably time to start selling.Note: I sometimes hold onto a very small amount of shares so that I can participate in any future SPP, as these can be quite rewarding. 'lower risk' businesses (these will all have earnings) , I will be able to monitor their earnings growth, debt, PE's etc to check whether the stock has stopped growing, the industry changed, the debt increased, it is overvalued, etc. These facts and others will help me decided whether to sell. I will sell part of my holdings if any of the above occurs and then continue to monitor the situation and possibly sell the rest depending on what occurs into the future. I tend to listen less to 'Mr Market' with the 'lower risk' businesses, ie I back my own judgement.'high risk' businesses I normally do not invest more than 3% of my portfolio into each of them.
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Good strategy retiredyoung
