THIS IS NOT A TIP. I AM NOT A TIPSTER. PLEASE DO YOUR OWN RESEARCH. PLEASE READ THE DISCLAIMER ON THE HOME PAGE OF MY WEBSITES.
If you follow my Twitter Feed and look at the Changes List on the Homepage of my Main Website, you will hopefully have noticed that I sold all of my Spreadbet Positions on Aviva AV. this morning at 519p. This was a Spreadbet Price - the Price in the Normal Shares Market was about 521p at the time - the ‘Spread’ on a Spreadbet is wider for many reasons which I will explain in a future Blog - if you cannot wait, then Robbie Burn’s Naked Trader 4 Book has a Section on Spreadbetting that explains it all very well. I banked about 0.5% of my Total Portfolio Value on the trade so it was ok, but nothing special. On the recent buy from roughly 3 weeks ago I made 6% on the ‘Exposure’ and on the other position which I have held since October 2013 (a long time !!) I made 20%. Of course, because these are Leveraged I actually made a lot more than that as a Percentage of my Capital Employed - probably near 100% but I have not worked it out yet.
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When is it time to dump a Stock? An overview of WheelieDealer’s Sell Triggers - Part 5 of 5 !!16/1/2015 As per the Title, this Blog is the last one in this astonishingly lengthy saga. To read the other 4 (alternatively, you could poke your eyes out with a blunt chopstick), please click ‘Selling Rationale’ under the ‘Categories’ heading for this Blog Page.
Chart goes Vertical This selling trigger came into my mind this week when some of us were discussing The Biotech Growth Fund BIOG on Twitter. What fired my thinking was that I see it time and time again (unfortunately, rarely on stocks I own !!) that a Share Price Chart “goes vertical”. Some chartists refer to this as “going parabolic” (para-bollox more like !!). Sell Half on a Double
Some people like this approach. It can be refined in several ways - for example, you could say “when a stock doubles from my Buy Price, I will sell One Third of my holding”. There are lots of ways you could cut it. You could extend the Rules and say “when the stock triples from my Buy Price, I will sell another Third of my holding.” etc. The beauty of this kind of approach is that it takes your emotions out of the decision - the Key is to make things Mechanical, Robotic and Rules-Based. I know I have tweeterererered a few times about the idea of having a set of Rules written down at the start of each Calendar Year - I do exactly this myself. So these kind of Selling Rules could be written clearly into your Rules Document and you must then follow your Rules in a disciplined manner - no umming and ahhing, no shilly shallying, no ducking and diving, no Milk Today Please - oh, sorry, that’s something else - you just get on with it and follow the Rules. THIS IS NOT A TIP. I AM NOT A TIPSTER. PLEASE DO YOUR OWN RESEARCH. PLEASE READ THE DISCLAIMER ON THE HOME PAGE OF MY WEBSITES.
On Tuesday 23rd December 2014 I Topsliced my eBay (epic code EBAY) Spreadbet Position, banking roughly a 10% gain on the Exposure this position represented. Of course, because I was using Leverage, the return on the Deposit money tied up was probably about 200% (Deposit 5% on this stock I think). This is just a short Blog to explain the move - I have kept the Rump of my EBAY Exposure - I don’t want to sell out totally but it seemed like a sensible Short Term Tactical move to trim it a bit - as I will address below. THIS IS NOT A TIP. I AM NOT A TIPSTER. PLEASE DO YOUR OWN RESEARCH. PLEASE READ THE DISCLAIMER ON THE HOME PAGE OF MY WEBSITES.
You may have seen on Twitter and in the ‘News’ bit on my Homepage that I sold all my Plus 500 PLUS exposure earlier this morning at about 565p. I wanted to give just a swift explanation of why I made this move - because it was a bit quick and that is most unlike me !! I have had a pretty nasty experience with PLUS so I am not really prepared to put up with any naughtiness. It has been very frustrating and I don’t need the grief - I am an old man and my heart is not up to it !! Uptrend Channel Break
This is obviously a Technical Analysis type Sell Signal. Occasionally (but not very often really) if I have a Stock that has done very well and been Trending very strongly upwards in a very well defined ‘Channel’, then if it breaks the Bottom Line of the Channel to the downside, then I might Sell the Stock. Obviously if it is a Stock that I really like from a Fundamentals viewpoint, then I might hang on to it and ride out the Technical pressures, but if I am less wedded to the Stock, then I will dump it. Some people use these kind of Indicators all the time in their Investing - but this is more a Trading approach really - and as Regular (long suffering more like) Readers will know, I tend to use Fundamentals to pick my Stocks and Technicals to time my Buys and Sells. When is it time to dump a Stock? An overview of WheelieDealer’s Sell Triggers - Part 2 of 310/12/2014 Hopefully this Blog can flow sweetly, but I am a bit worried because I am starting it off just after I shoved a Chicken Pie and Chips in the oven - so I will be rudely interrupted in about 25 minutes and probably have totally lost my flow when I write the remnants of this with a full belly and after culinary distractions. I am not sure if these are ideal conditions to be producing a good Blog in - we will find out soon enough…….
This is the second part of my ‘Mini Series’ on what kind of situations make me Sell a stock I hold. Part 1 was focussed on my Income Portfolio and Unit Trusts - this one concerns my usual Trading ISA (including Spreadbets) where I am much more active (think Snail like trading as opposed to Glacial !!). Oh, by the way, I have written some text on Example Unit Trust Portfolios - expect this very soon. When is it time to dump a Stock? An overview of WheelieDealer’s Sell Triggers - Part 1 of 25/12/2014 As I have probably hinted at, my punching out a Blog method is quite sort of random sometimes. I was going to write about how I Filter out good potential stocks from duff ones in a quick ‘Triage’ type process, and then I thought maybe I should do it logically and start with how I find stocks to shove in the Filter in the first place.
But, oh no, that is far too sensible and easy to follow. So, I have decided to write about what makes me Sell stocks. So much for a logical order of things……. This is really in response to an ADVFN Bulletin Board comment on the CAMB board after my recent ‘Buying Rationale’ Blog (many thanks Imranawan for your helpful inspiration !!). The gist of the post was that my Blog was ok and it was helpful to read about reasons and thought processes for buying a stock, but how about reasons for selling? |
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