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When an specific investment runs up in your own holdings..

bluelobsterbluelobster Posts: 1,220 ✭✭✭
in Precious Metals
..whether it be a PM, coin, stock or some other asset, when do you liquidate, considering that you could hold longterm?
This is every bit as important as what to buy, but maybe even more challenging. Hedging? take profits? Stop loss...let your winners run?
They all have advantages and pitfalls, of course, some assets are way more liquid than others.

Comments

  • jmski52jmski52 Posts: 22,854 ✭✭✭✭✭
    At one time, I would try to time the market and nail a rally to make a killing. If it happened as planned I would feel vindicated and pretty darned smart. If it didn't happen, I'd rationalize a little bit and then shake it off.

    I've read in the past that a successful investor knows when to do nothing and to let a position alone. So now my approach has been to sell when I need capital and to buy when I have dollars that are begging to be rescued. If you are consistent, there is nothing wrong with building a position over time.

    No matter what else, ALWAYS take into account the tax consequences of both holding and selling any position. ALWAYS.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • bluelobsterbluelobster Posts: 1,220 ✭✭✭
    Good points and no doubt taxes have to be considered, although they can be a trap, like not taking profits because of taxes back in the 2008 meltdown.
    in hindsight we all probably thought we should have taken the gains now, but it's hard. I usually find myself having both the devils on my shoulder..fear and greed. Strangely I have found the strongest one of those is usually wrong ;~

    Of course, I'm not talking about a decaying leveraged investment, selling quickly is really the only prudent option in that case.
  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    sell when you are happy with the price.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • guitarwesguitarwes Posts: 9,266 ✭✭✭
    Trim a little off the top when you are happy with the profit %. Sit back and watch the rest of it do what it do. If it drops and you like the stock and you think it's solid, buy more. If it climbs, trim a little more and splurge on one of those new fangled VCR players.
    @ Elite CNC Routing & Woodworks on Facebook. Check out my work.
    Too many positive BST transactions with too many members to list.
  • bluelobsterbluelobster Posts: 1,220 ✭✭✭


    << <i>Trim a little off the top when you are happy with the profit %. Sit back and watch the rest of it do what it do. If it drops and you like the stock and you think it's solid, buy more. If it climbs, trim a little more and splurge on one of those new fangled VCR players. >>



    Wes, did sell some, I just ended up buying way more than I normally would in this case.

    and Derry, I should be happy with the price...that's what's got me a bit bumfuzzled.

    BTW Wes, I'm thinking about going super new fangled and get me one of them Bater Maxes...but I'm not sure they're in stores yet. ;
  • jmski52jmski52 Posts: 22,854 ✭✭✭✭✭
    BL, are you in the market for an 8-track? I think I could come up with one in the attic.image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • chumleychumley Posts: 2,305 ✭✭✭✭
    you ought to hear my dot matrix printer hum
  • JulioJulio Posts: 2,501 ✭
    "At one time, I would try to time the market and nail a rally to make a killing. If it happened as planned I would feel vindicated and pretty darned smart. If it didn't happen, I'd rationalize a little bit and then shake it off.

    I've read in the past that a successful investor knows when to do nothing and to let a position alone. So now my approach has been to sell when I need capital and to buy when I have dollars that are begging to be rescued. If you are consistent, there is nothing wrong with building a position over time.

    No matter what else, ALWAYS take into account the tax consequences of both holding and selling any position. ALWAYS. jmski52.

    Sage advice jmski52; prudent advice. IMO

    image
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