Quote:
Originally Posted by lewdog
So what's your marker for percentage of profits you need to make before doing it?
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We were just kicking it around, talking pros and cons.
The big pro to me is developing a portfolio of company's you actually believe in.
Minimizing losses and removing the emotional factor is also important.
We talked about using the fixed percentage OR having a specific exit strateg.
IE If I buy NVDA because I know they are going to kill it in the second quarter because their new graphics card is redefining the market, I sell after the earnings announcement is digested. If I buy it because of their potential growth into the automated driving market, I may establish a long-term hold strategy - or just buy long-term call options. In the case of NVDA I did both. However, I got antsy on my long-term call position after it had basically gained 250% on the value of it. That option would now be worth over 6 times my initial investment. But I am happy just to have raked some gains, even if I gave some up because I am a nervous nelly.