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 Bolt (BTJ) hit one of my appreciation targets. I had 150 shares in my trading account, and with the stock passing the 180% appreciation level, I sold 1/7th or 21 shares of Bolt at $50.52. These shares had been purchased 1/12/07 (!) at a cost basis of $17.44 (!). Thus, I had an appreciation of $33.08 or 189.7% on these shares. As you probably know, I target my stocks for partial sales at 30, 60, 90, 120, then 180, 240, 300, 360, 450%, etc., appreciation levels. Currently, I am selling 1/7th of my holding when shares reach these points.
With this in mind, my next targeted sale on the upside would be at a 240% appreciation level or 3.40 x $17.44 = $59.30. On the downside, I have been trying to sell stocks either on some fundamental bad news or if they should decline to 50% of the highest appreciation level at which there was a sale. This way, I am continually pushing up the stops as the stock appreciates. With Bolt having now been sold at the 180% appreciation level, on the downside, I plan on selling all remaining shares if the stock should decline to a 90% appreciation above my purchase price or 1.9 x $17.44 = $33.14. Thus, I give the highly performing stocks in my portfolio more 'room to play' so to speak :).
Anyhow, it is nice to report good news once again! The market is kind to me and I have been starting to pay down my darn margin which is far higher than I would prefer.
Currently I am at 20 positions in my account which is my new 'maximum' size for the portfolio. If I were below 20, this sale would be giving me a "permission slip" to add a new holding. At the maximum, I use sales like this to either accumulate cash or in my case pay down margin!
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