Hello Friends! Thanks so much for stopping by and visiting my blog, Stock Picks Bob's Advice! As always, please remember that I am an amateur investor, so please remember to consult with your professional investment advisers prior to making any investment decisions based on information on this website.
A few moments ago, checking my holdings in my Trading Account, I noticed that Morningstar had hit a 'sale point' and I sold 27 shares, 1/6th of my 167 share holding, at $52.32. These shares had been purchased 11/22/05 at a cost basis of $32.57. Thus, this represented a gain of $19.75 or 60.6% on the original purchase. This was my second sale of Morningstar shares, having sold 33 shares of Morningstar 2/16/06 at a net of $42.94, which was at a gain of $10.37 or 31.8%.
As you may know, my strategy in this account is to sell portions (currently 1/6th of remaining shares) at targeted appreciation points, which I have set at 30, 60, 90, 120, then 180, 240, 300, 360, then 450, etc. This sale also creates a 'buy signal' entitling me, since I am well under my maximum 25 positions (currently holding 15 positions) to add a new position to my holdings. As I like to say, "that nickel is burning a hold in my pocket already!"
When do I plan to sell Morningstar shares next? As I noted above, on the upside, if the stock should appreciate to a 90% appreciation point, then I shall be selling 1/6th of my 140 shares (23 shares), or on the downside, if the stock should retrace 50% of the highest sale point, or back to a 30% appreciation point (1.3 x $32.57 = $42.34) then I plan on selling all remaining shares.
I believe that this pattern of selling gaining stocks slowly and partially and declining stocks quickly and completely will prove to be an effective strategy at creating a winning portfolio. Of course, this is a work in progress, and time will tell if this will be successful!
Thanks again for stopping by and visiting! If you have any comments or questions, please feel free to leave them on the blog or email me at email@example.com.