Our general take on how to sell, in brief form.
Q: I’ve been a VoSI subscriber for almost a month now, and will certainly continue. Most of the recommendations since I started – CTXS, VMW, CRM, FFIV, VRX, PCLN, ROVI, ALTR, RAX, TTM, CYT, EBIX have performed extraordinarily well, even in the context of the S&P and NASDAQ being up about 9% and 13%, respectively, during the same time period. M&A rumours for many of the stocks in the selection have also helped. But nevertheless, your picks have done very well.
However, I’ve not been as successful as I should have been, and the fault is mine because I have not been able to discipline myself to stick to the position, particularly during the several down days for many of the recommendations during September. I know I have to cure this weakness if I am going to be successful at this type of investing. Do you have any advice for me in that regard?
Gil A: I think the key is to stick to core positions, using key moving averages to cut back or add around the core in order to manage your risk and take advantage of rapid price moves when they occur. I have forwarded your email to Dr. K for his view of the matter.
Chris A: Create sell rules that fit your risk tolerance levels. In other words, make rules you can live with, that you wont break, but rules that also wont cause you to sell prematurely or hold too long. The art and science of selling right can be like walking a tightrope at first, and requires understanding yourself, your trading personality, and your risk tolerance levels. We discuss sell rules in greater detail in the FAQ portion of the website as well as in our book.
This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.