When would have been the right time to sell Microsoft or Walmart???
If you have a crystal ball, perhaps you would know----even the greatest chartist, William O'Neill says to buy a stock as it is breaking through New Highs and coming off a base----on strong volume. Tellabs broke through that high (63) two days ago on 4 million shares. And there it is not always necessary to sell---especially when you are dealing with one of the "Great Growth Stocks"----the kind of stock like Tlabs in which if you entered in 1994 with $10,000, you now have about $250,000 and are still going.
Exactly at which point would you have jumped off of Tellabs???
It doesn't make sense if you really are into T/A and have looked at the Charts on Tlabs-----they are "off the charts".
And if you are a "fundamental investor"----then people like Peter Lynch suggest that you sell when the earnings break down----NOT BEFORE.
Attempting to time markets, cost me a lot of money----I have done extremely well with Tellabs----but would have done even better if I had just forgotten it. But then I also had Microsoft back when my broker didn't know what the symbol meant----prior to any "splits" and that same 100 shares today would be worth over 1.4 million dollars.
Unfortunately, I took Catherine's advice----or some other T/A's advice---and sold----nice little profit----but none of the following runups and splits------a bit short of the 1.4 million I would have had I just held the stock.
Tellabs is like Microsoft, until earnings break down, just hold it; just when you let it go, it will run away on you. I know, I have traded it many times !!! |
