My strategy of selling into the mid 2012 - 2013 rally has been profitable, but has led to a bit of seller's remorse. Of the 20 stocks that I have sold, only 6 are at or below the price at which I sold. The remaining 14 are higher than the selling price, although 2-3 of the higher stocks were briefly lower than the selling price.
In addition, my spouse's strategy of keeping the College 529 Plan investments when I decided to go to cash in mid 2011 has paid off. Her account is now 15% higher despite being 10% lower than my account after the 2011 selloff.
At this point, I still believe the rally is unsustainable in the long term. So I will accept the downside of additional seller's remorse and continue to use the rally to take profits.
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This is not financial or investing advice. Please consult a professional advisor.
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3 comments:
You need to do what I do -- sell and don't look at the stock's price again until it comes up as a potential trade. You'll sleep a lot better.
Good point. For reference, I am looking for the opportunity to make the trade again, which is why I'm tracking the price :-) I'm not a big fan of using alerts since I may miss them.
I will typically place a stop loss order to sell stocks. Like a trailing stop, I will move up the stop price when the stock rises. Stops work best in stable and rising markets. However, they don't work well if there is a lot of volatility.
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