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 consult with your professional investment advisors prior to making any investment decisions based on information on this website.
Last night, while reviewing my sale strategy with my son, who is still learning about investing and not quite sure about what I do :), I realized that I had "missed" a sale target on my strongest stock in my portfolio, Quality Systems (QSII).
If you are new to my strategy, I personally like to sell my losers quickly (as I just did with my ANF stock--see previous post) and sell my gainers slowly; selling 1/4 of remaining position at targeted price gains of 30, 60, 90, 120%; and then 180, 240, 300, and 360%; with planned sales increasing by 30% intervals x 4, so that the next sale gains would be at 450, 540, 630, and 720%...etc.
Anyhow, somehow, since I do all of this manually :(, I missed a sale on Quality Systems. Since I am at 24 positions, this would also be a signal to me normally to be entitled to add a postion to the portfolio. However, since this was a mistake, I shall be sitting on my hands.
Back to the point, I realized last night that my gain on QSII exceeded 300% which would be my 7th sale of shares of this stock. Until this morning, I had sold QSII six times (!), which would make the last sale at the 240% target.
A few moments ago, I sold 25 shares (of my 102 share position remaining) at $69.02. These shares were acquired 7/28/03 with a cost basis of $15.50 (!!), thus giving me a gain of $53.52/share or 345.3%. I am thus closing on my next sale target of 360%!
Anyway, I shall not be going to 25 positions until I get a real (not delayed) sale at a gain! And in the interim, this also works to reduce my significant, but hopefully gradually shrinking, margin level!
Thanks again for visiting! If you have any questions or comments, please feel free to leave them right here on the blog or you can email me at bobsadviceforstocks@lycos.com.
Bob