Quote:
Originally Posted by GregWeld
This "trade" has just gone green.... with KMI trading at $32.52
This is where you learn whether or not you're "greedy" -- meaning that the trade worked as you wanted it to - but now - rather than stick to your plan and sell the original shares etc as explained in the thread...... instead you decide it's worked so well - and you want even more gain - so change to holding it for an even bigger gain.
OR........
You stick to "the plan" - acknowledge that you were lucky this time - beat the street... and you breathe a sigh of relief. Pull the trigger and sell the higher cost shares. And carry on. And use the new cash to go back to your "adding to existing holdings".
Remember that this trade works SOMETIMES --- and the greedy dudes end up holding the far larger % (the 5% rule) and then it can go SOUTH real quickly and destroys your plan and your account. That's where the saying "pigs get fat and hogs get slaughtered" comes from.  |
So just to expand on your further plan B option. I'm in KMI originally at 41 dollars ( we have a little ways to go ) I only have 21.5 shares. I picked up a 1/2 share in the 10 months I have had it. But the P/E rating is really high from the numbers you guys say to be around 20. It is at 40. SO does that indicate it might be a while before some thing happens to put me in the green.
So if I'm in this for 20 plus years should I let it sit hope to make it green some day? Or double down and move that number down? Or take the number out into some thing else that might be more profitable sooner then waiting on the green.
My shop has done personal 401k for a year for Shannon and I and we started offering it to the employees this year so we could do more of it ourselves ( we have 2 plans - The standard and another called the SIMPLE ). The first one is limited to 6k per year and the 2nd has a pretty big limit - maybe 12k per year, more then I can fully fun for both of us, but we contribute and the company matches the contribution. But I get smaller payments every month so we only get to buy a handful of shares at a time. I doubled down on Shannon's BPT last week and did well on it this week. But the BPT is still way under water from what it was 18 months ago.
Just looking for the ideas on the little guy strategy.