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PROFIT DILEMMA
dunkang
#1 Posted : Saturday, January 28, 2012 3:24:57 PM
Rank: Elder


Joined: 6/2/2011
Posts: 4,818
Location: -1.2107, 36.8831
Suppose your portfolio has five (5No.) stocks in the reds (-12% to -47%) and only one is green (+64%).

Luckily, the green stock has pulled your portfolio to a net green i.e. after commissions (+12%).

Question:
What would you do?
a. Sell all the stocks and chew the 12% gain,
b. Sell the green stock and wait for reds to greenen,
c. Sell the reds and keep the green,
d. Sit back and wait for all greens,
e. None of the above,
f. Some of the above,
f. All of the above. lol

Am not the one in this dilemma, neither is any of my friends, so ANSWER as if its you in the mix!
Receive with simplicity everything that happens to you.” ― Rashi

Jamani
#2 Posted : Saturday, January 28, 2012 3:35:49 PM
Rank: Elder


Joined: 9/12/2006
Posts: 1,554
Depending on your initial reasons to buy the stocks in questions, check to see if your reasons still stand..... then make a decision.
Personally i would add to those that have gone low in value to average my cost downwards as I wait for the bull...
QW25091985
#3 Posted : Saturday, January 28, 2012 4:37:21 PM
Rank: User


Joined: 1/24/2012
Posts: 1,675
Location: In Da Hood
Hehehe. Just say its you with the dilema. Wazua is anonymous enough. Anyway you have to put into perspective the trend the market is in.
So your guess is as gud as mine : SELL ALL , and buy cheaply latter.
But if you think the trend is up like @big chair or @ the deal, you can let the reds mature.
So its about the trend. But i'd argue you to let the pre company results hype to die down we get a clear picture of where the index is headed. But am biased for another sell off.
jerry
#4 Posted : Saturday, January 28, 2012 6:01:09 PM
Rank: Elder


Joined: 9/29/2006
Posts: 2,570
Retain the one with 47% loss. Sell the other REDs! and BUY more of the former. Make your own decision on the green! Asumption: you don't have a PAKA or Paka-like stock.

Could we know your worst performing stock?
The opposite of courage is not cowardice, it's conformity.
dunkang
#5 Posted : Saturday, January 28, 2012 6:30:43 PM
Rank: Elder


Joined: 6/2/2011
Posts: 4,818
Location: -1.2107, 36.8831
jerry wrote:
Retain the one with 47% loss. Sell the other REDs! and BUY more of the former. Make your own decision on the green! Asumption: you don't have a PAKA or Paka-like stock.

Could we know your worst performing stock?



Sincerely, its me. the -47% is actually BRITANK IPO Shares!
Receive with simplicity everything that happens to you.” ― Rashi

Gordon Gekko
#6 Posted : Saturday, January 28, 2012 6:37:42 PM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
Lock the gain, sell the green then forget stocks - take a cookery or knitting class - till after elections.
dunkang
#7 Posted : Saturday, January 28, 2012 6:43:32 PM
Rank: Elder


Joined: 6/2/2011
Posts: 4,818
Location: -1.2107, 36.8831
Gordon Gekko wrote:
Lock the gain, sell the green then forget stocks - take a cookery or knitting class - till after elections.


So far, this is the best advise i have received.
Receive with simplicity everything that happens to you.” ― Rashi

jerry
#8 Posted : Saturday, January 28, 2012 6:55:43 PM
Rank: Elder


Joined: 9/29/2006
Posts: 2,570
dunkang wrote:
Gordon Gekko wrote:
Lock the gain, sell the green then forget stocks - take a cookery or knitting class - till after elections.


So far, this is the best advise i have received.
Britank! is now at 4.70. A gain of 25% will take it to 5.90. This is unlikely in the near future. I wthdraw my BUY advice.
The opposite of courage is not cowardice, it's conformity.
sparkly
#9 Posted : Sunday, January 29, 2012 7:50:51 AM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
dunkang wrote:
jerry wrote:
Retain the one with 47% loss. Sell the other REDs! and BUY more of the former. Make your own decision on the green! Asumption: you don't have a PAKA or Paka-like stock.

Could we know your worst performing stock?



Sincerely, its me. the -47% is actually BRITANK IPO Shares!

If the green is an agricultural, sell it and lock in the profit. Buy a cheap blue chip with the cas.
Life is short. Live passionately.
youcan'tstopusnow
#10 Posted : Sunday, January 29, 2012 2:22:39 PM
Rank: Chief


Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
dunkang, your diversification has served you well as you are still up 12%.
GOD BLESS YOUR LIFE
itz
#11 Posted : Sunday, January 29, 2012 9:08:51 PM
Rank: Member


Joined: 3/20/2009
Posts: 348
this is a no brainer.i would do A. sell all the stocks and keep the 12% gain.start building a new portfolio slowly between now till after elections.if possibe,you can hedge your new holdings if u think the market will go down by shorting the ftse nse index or buying treasury bills that way if the mkt goes down u can still end up being in the same position you are in today where net net u have a 12%+ gain.in future cut small losses before they become huge losses.when u enter a new position you should have plan of what price to sell for profit or when to exit if it goes down.
Aguytrying
#12 Posted : Sunday, January 29, 2012 9:08:56 PM
Rank: Elder


Joined: 7/11/2010
Posts: 5,040
@dunkang. I think you should sell all the stocks except britank. Then wait for the share to go down after the end yr results, buy more at the new depressed price. Then buy cheap blue chips with the rest of the money. You can even get dividends if you do it before results. Then don't sell anything till 2013-2014. No matter how low they go.
The investor's chief problem - and even his worst enemy - is likely to be himself
VituVingiSana
#13 Posted : Monday, January 30, 2012 11:41:33 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,261
Location: Nairobi
Always look at the CURRENT price & prospects going forward. The rest is history. There are no capital gains tax... so it's irrelevant as to past profits & losses...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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