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International Investing / China Connection


Subject:  a question about selling Date:  10/20/2003  10:23 AM
Author:  patrick2020 Number:  847 of 3437

first, my investment style involves themes so i want to hold for at least the intermediate term (3-9 months) and preferably long term. I also hold a couple russian stocks in addition to some mentioned here. I sold CSCO some time back for a gain because my basis was less than $4.00...I have seen several people mentioning selling part of a position but am curious as to their reasoning. And why now. What is the better investment or bad news. Quite frankly, i do not know when to sell. The china connection stocks are in a great uptrend with considerable volitility without corresponding news. If you sell, you end up buying back in at near the same price. I follow momentum and price indicators, chart patterns, PnF charts, candlesticks and keep a watch on the news for sales and earnings information. (This is a learning experience and i have no life). I find the IBD rules suggestions on selling as a good way to insure only average returns for a higher risk investment. If you sell because the market turns, most stocks do go down but not all and not all equally. And are you fast enough to get back in to these. Also, china stocks are not as tied to us markets. Selling after a 20% price increase in not wise with the returns these investments are posting. At20%, you are out of the market part of the time and you will have some 8% losers so you over-all return may look like an decent mutual fund but with a lot more work. i understand his exception of fast growers and cups and saucers and saucers with handles but do not believe any of the above works with these particular stocks- although i also do not believe that the laws of supple and demand have been suspended.....So, as the months and years go by, if anyone has any ideas on selling, it would be appreciated (i dont really believe very much in portfolio rebalancing - it reminds me of modern portfolio theory--- i prefer Davy Crocket---Make sure you are right and then go ahead) my laugh for the the meantime i am holding on--take care and i apologize for rambling
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