When to Buy Low/Sell High?

[cprice72]

Here is a question for you. One of the most used phrases of advice thrown out there is "Buy Low/Sell High"! What do you guys consider as selling high.

Just a little hypothetical here. WMT fell below its 200 day MA to roughly $43 and some change around the first week of July. If you would have purchased say 25 shares at $43 bucks then, would you have sold it at $45 a share, or continued to hold it waiting on a bigger payday (which you would have had) or waited hoping that you could have forseen the $51 dollar price it hit in Oct?

Thanks!

 

[Birchtree]

Over the last 30 years of investing and learning as one goes - I've discovered that selling for me is very difficult. I only do it when there are other opportunities that catch my eye and I need money to buy'em and tuck'em. I currently have 205 individual stocks in my outside portfolio and am always looking for more wall flowers. I'll be doing some selling at the end of the month to make a few more purchases. If I had my choice I'd never sell so my sacrifice is to force myself to take profits. Hope that helps.

 

[ou81200]

cprice72---

When you decide to buy a stock. You should have a exit strategy plan. When I buy into smething, I use the 10% rule. If it goes up 10%, I sell. If down 10%, I sell. This way, I have a less chance of letting emotions play onto my strategy.

Hope this helps

 

[Spaf]

Here is a question for you. One of the most used phrases of advice thrown out there is "Buy Low/Sell High"! What do you guys consider as selling high.
Thanks!

Tops are hard to find. Some folks like different indicators / charts. Some have favorites. A good sell would be when stocks are high / overbought.
Indicators like moving averages, MACD with histogram and the RSI are some of the most used. i.e., when the RSI gets above 70 stocks are overbought. The histogram will plot the trend and the MACD will show reversals. Some folks suggest resetting the MACD to 8,17,9.

We have some very savy members. See Rokids Tally sheet. The top folks are a pretty good judge of when to sell.

 

[KAPLOWD]

Put a sell/stop order in on the stock, to lock in profits as well as protection against major losses. For more details refer to Stan Weinstein's "Secrets For Profiting in Bull and Bear Markets".

 

[Birchtree]

cprice72,

Stan had a four phase system that I actually tracked back in 1984-85. It was interesting to say the least.

Here is an example for you to consider: In 7/18/06 I purchased Goodyear (GT) at $9.78, and again at $13.86 on 9/07/06. I have blocks that go back to 3/17/03 at $4.17. Today this stock closed at $22.77. Should I sell - not on your mark, especially when I prognosticate a price of $105. Now if it gets to $50.00 I might consider trimming some profits to buy other wall flowers. I already have a nice profit in the Ks but am pegged to make much much more. Never sell just because you have a profit unless you have other choices you want to acquire. Let your profits run and run.

 

[cprice72]

Hey guys...All excellent posts and advice in there. I appreciate all the knowledge that is shared here.

I am new to investing and haven't invested a dime in anything except my TSP. Coming up on a year long deployment where I plan to save some money outside of my TSP that I can invest into individual stocks when I get back. So I have over a year to get smart on this, and you guys are helping out.

And it is good to see replies from the people in which I read a lot of posts from in the forums. Makes me feel like I am asking the right questions.

Thanks