Hi Greg,
Number one, I always take money out of the market when I have done well. I suggest this to everyone. I don't care if it is to buy an Airplane, remodel a kitchen, buy a second home or what ever. I have a tendency to get sloppy and give money away when I am rolling in it.
Number two. I have a vision of what I think a stock should do near term and if it does not do it, I'll sell and don't care about a certain price, I just get the hell out.
Number three, if it is a stock I like and believe in like RNWK, I buy more out of the cash I have, I always try and have half cash at all times. I can't always do it but it is a great way of making money on the good stocks.
Number four and my favorite, I cover almost everything and work up from there if possible. I rarely go for the home run. Just like the April calls I wrote on QCOM three months ago, who would have thought when I wrote the April 130's that we would be hanging around that today. I have seen where so many have covered on the Q and bought back, not me, that is suicide unless the news is overwhelming to do warrant such action.
Finally, I always look at my account and others and ask where if in any stock, could I do better and if the answer is yes, I'll sell hell out of that stock and buy the other and then probably COVER. |
