[sik68]

Speaking of profit-taking...

Chicago Bridge and Iron (CBI) was a stock I've owned for a while now, but didn't really know WHY other than I read some articles a while back. I don't follow the industry, don't know the company, doesn't pay a dividend, and and it's not one of those companies that makes enough headlines to keep track of it easily.

The price skyrocketed in the last 3 months, so I sold out Tuesday after a 62% gain. More importantly I learned 3 things:
1) Don't be greedy
2) This was luck, and for every stock that I rely on luck to make me money, I will be AT least as unlucky for another stock.
3) I freed up money to invest in a 'steady eddy.'

It felt really good to learn a lesson and make money at the same time. I am seeing more and more that knowledge of a company is more valuable to my sanity than the share price. I rest easier knowing that I reduced my exposure to what I don't know, if that makes sense.




Greg, do you you think a young guy like me (29) should take an interest learning to "scale in and out" of the market? My sentiment is that this recent run may be a good time to see what scaling out (say 30% out) of my mutual funds can do, but remain all-in on my steady-eddy dividend stocks. My reason is, with all my money tied up now, I don't have any for periods when the market "goes on sale." Timing the market is bad I know, but I think I need some on the sidelines if I ever want to take advantage of a market on sale. Am I being logical? I am reading Ben Graham's "The Intelligent Investor" right now and it's drilling into my head that "money is made on the buy," so I am feeling more compelled to actually be ready to buy.

Thanks!!