I hear ya, Bob. I am getting like I always get with a winning position - very nervous.
Believe me - not only do I hear ya, but I have similar thoughts.
Great questions - wish I had great answers. I don't. Not to try to sidestep, but I think the answers to those depend upon so many different factors including fundamentals (this Q should be another excellent one), size of position, your level of risk, relative strengtht, time of year, etc.
Interestingly, you ask about strategy for adding to an existing position. You may not believe this, but last month I was at a party and stocks came up. I begrudingly shared my TSCM story, but later I thought to myself that the stock was really, really ready to run higher after such a long base. But alas, I did nothing about it despite recognizing that this probably the best risk/reward of all my holdings. So, in short, my strategy, which I did not implement this time, is to add to an existing position if it is coming out of a long base and the OBV is there to support it.
I will also say this, in terms of an exit strategy, I did have one. As I routinely do, I placed limit sells after I was done accumulating and then I monitor. In this case, I had limits originally set from last summer for considerably less, but for the reasons previously cited (OBV poster child and recent Insider purchases), I began to raise those limits over the last few weeks and on more than one occasion.
Having said that, I hate to jinx it b/c a reversal would certainly be in order at this point. So, after a beautiful run like this, just to keep things from getting too crazy, I took something off the table at EOD, so I did.
Let's raise a glass to this run continuing into '06 and a second glass to finding the next TSCM in '06!
Happy Holidays to all! |
