Quote:
Originally Posted by GregWeld
I hate that little man on Wall St!
I mentioned that I sold half my Goldman Sachs --- since it was way down -- and I had to counter some gain from the Apple sale at the end of the year... And today it jumps $6
Okay - so the lesson here is -- SCALING IN == SCALING OUT.... I only sold HALF of the position and still hold 1000 shares... so I get HALF the gain at least.
Had I sold it all at the lower $ I would just be "out". Remember -- this little SOB is watching you! And the minute you're OUT - he takes it UP. Hate that little guy! 
If you scale into a position - sometimes it raises your cost basis... IF the stock is rising over time. But ---- isn't that what you wanted when you bought it in the first place? So if you buy 50 shares at $50 and buy another 50 @ $52 does it really affect your basis that much to care? No --- you really want it to go to $60 so you still have a nice gain. Don't be a hog....  |
Greg- I've got my eyes out for that dude, and I totally agree with scaling in and scaling out (unless one of the fundamental reason you bought a stock changes, ie- you bought a stock for the dividend and the company suspends the dividend and issues a poor outlook, etc). To follow up on my earlier post of scaling down my position in FOLD and increasing CVX... My fundamental reason for purchasing FOLD hasn't changed, which is why I held half my position, I just wanted a little less volatility in my portfolio. FOLD is up nearly 120% since I made that move!
Good news, I kept half, bad news I sold half. Let me know if you find the little man from Wall Street!