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Old 02-14-2013, 04:44 PM   #44
Amnorix Amnorix is offline
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Join Date: May 2003
Location: Boston, Mass.
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Quote:
Originally Posted by Rain Man View Post
Your Alcoa example is another reason why I implemented this system. I too have had a few stocks that have had a really good run, and then it frustrated me to see it drop back down. I set the 20 percent threshold because I figure it's low enough that a stock could have a good run and go up that far and then drop back down within a short period of time. If I get that return and then eliminate the risk to my initial capital, then I'm willing to take the risk that it'll cool down if my only downside is losing profit.

Well, I've implemented your plan already. I had Pfizer bought at $17 and it's at $27, or up 55% or so, and I'd arbitrarily decided to sell at $30/share, which it's been slowing climbing toward for awhile. Instead, I have now sold 2/3rds of my shares, which is enough to get my initial investment back, and am holding onto the 1/3rd as a profit play.

Your take the money off teh table approach makes sense. Of course, lately it hasn't been too tough to get a 20% gain on anything if you were buying anytime after the '08 crash...

In a bear market, finding somethimg to go up 20% is a helluva lot harder.
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