Hi Jerome,
Nothing wrong with taking profits,it is the loss of profit that may be missed. If you were lucky enough, or smart enough, to get out yesterday, based on what you are saying, you made money. Now based on the idea you think it is going down further you are parked in cash.
Fair enough. Lets say, however you can't determine where the market is going tomorrow or the next day. You can only say that in the long run the market should appreciate.
On the other hand you can recognize, as it becomes apparent, that the market today from early on to the time I write this, the market is down. Now, from this point, if you had your stock (did not sell it yesterday) would you sell it now thinking it will still go further down?
In effect that is what you are saying by thinking Dell will retrace downward.
I sold at 109 and change went back in at 107 and change. Was happy to do so. Even as the stock goes further down I was happy to get that edge over Buy and Hold.
I have found that the best way to get that edge is to determine, based on your own experience, when a solid stock like Dell is in the grip of market conditions, that you view as temporary.
If, in a obviously downward situation such as today, you view Dell as the same Dell that appreciated so well in an upward market situation, the only thing that changed is the situation, not Dell's ability to hold well in a downward draft or to appreciate well in an upward draft.
Just something to think about.
Regards,
QT |
