Quote:
Originally Posted by Rain Man
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.
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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.
