What’s your big gamble? (Volume 2)
Discussion
Skyedriver said:
A couple of general questions:
a) When you have a P/F of say 4, 6 or maybe 8 companies and the P/F rises by say 14% in a day, would you cash it all in, take profits and start again or hold? (Me yesterday, now about 2% down on 31/12/20)
b) If you hold some shares which you feel are a LTH but you see them dropping steadily, at what percentage drop would you cut your losses and hope to re-enter at a later date.
Now I know both questions are rather general and the responses to both could be "depends" and it's really "time in the market rather than timing the market" that counts but just looking for folks' thoughts. I've held onto in the past expecting a rebound only to watch it fall further and further but also sold stuff only to see it rise again two days later.
For the first question and assuming P/F means portfolio - I'd never sell an entire portfolio based on its performance. (one day or otherwise). I only ever look at individual stocks within the portfolio when considering selling. I would sell a stock on a one day gain of 14% if it has met my longer term objectives or if I though it was peaking and I could buy back later cheaper.a) When you have a P/F of say 4, 6 or maybe 8 companies and the P/F rises by say 14% in a day, would you cash it all in, take profits and start again or hold? (Me yesterday, now about 2% down on 31/12/20)
b) If you hold some shares which you feel are a LTH but you see them dropping steadily, at what percentage drop would you cut your losses and hope to re-enter at a later date.
Now I know both questions are rather general and the responses to both could be "depends" and it's really "time in the market rather than timing the market" that counts but just looking for folks' thoughts. I've held onto in the past expecting a rebound only to watch it fall further and further but also sold stuff only to see it rise again two days later.
If I sold a whole portfolio it just gives me the headache of trying to research and find a handful of replacements so I'd prefer to drop off and replace one or at most two at a time.
Jefferson Steelflex said:
I thought when we started this gamble thread it was all about going balls-deep on a couple of AIM or lesser-known shares and trying to maximise profits in an otherwise falling market.
The way I'm doing it is going big on some really cheap shares that I think have legs, and I've set a target sell price in my head. I haven't grouped them together as a portfolio, I treat them as individuals, but they all have a price target.
I've sold a couple that just didn't perform how I expected, most of those were short-term gambles on things like ODX, SNG and a few others and like many on here the day I sold is the day they shot back up again. The moral for me is just to do a bit of research, understand the gamble a bit more, and set a target, and don't get spooked when they drop. There's too much FOMO involved here....
What are you holding now if you don't mind my asking?The way I'm doing it is going big on some really cheap shares that I think have legs, and I've set a target sell price in my head. I haven't grouped them together as a portfolio, I treat them as individuals, but they all have a price target.
I've sold a couple that just didn't perform how I expected, most of those were short-term gambles on things like ODX, SNG and a few others and like many on here the day I sold is the day they shot back up again. The moral for me is just to do a bit of research, understand the gamble a bit more, and set a target, and don't get spooked when they drop. There's too much FOMO involved here....
Skyedriver said:
a) When you have a P/F of say 4, 6 or maybe 8 companies and the P/F rises by say 14% in a day, would you cash it all in, take profits and start again or hold? (Me yesterday, now about 2% down on 31/12/20)
I wouldnt buy anything in the first place that i felt only had 15% or so to go up. Selling out of something because of a 15% rise is a prime example of selling your winner and running your losers.Its a really tricky task finding a stock to start a position in, so "starting again" on something new isnt a 5 minute job for me and usually requires at least a couple hours of reading through figures and reports (and then usually dismissing the company for some reason)
Besides, most small cap stocks have such a large bid-ask spread that if you were to buy and sell you have already lost a few % just on that spread.
Skyedriver said:
b) If you hold some shares which you feel are a LTH but you see them dropping steadily, at what percentage drop would you cut your losses and hope to re-enter at a later date.
Assuming nothing had changed with the business from when i had decided it was a buy, id go to every length i could to find more money to plow into it.I sold out of IAG during the summer because i realised it was no longer the business i bought in the first place. (burnt through its cash, taken on debt, issued more shares and was no longer in a good trading environment. It killed me to crystalise a 70% loss but im glad i did it.
ok day bar sng. eternal question looking at avacta do they have something or nothing. not that i have any.
thinking of putting my sensible dont touch money in costain and a few other boring but surely they will go up more than interest rate shares.
or maybe put the lot on wirecard tomorrow
thinking of putting my sensible dont touch money in costain and a few other boring but surely they will go up more than interest rate shares.
or maybe put the lot on wirecard tomorrow
That's all folks...
The fun continues over here > https://www.pistonheads.com/gassing/topic.asp?h=0&...
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