These days are tough days. Even though HSI reached a new high level - 27,000, the noise in my mind became louder and louder everyday.
There is a question surrounding me:
1.) I bought 941 and 902 around $41 and $5 respectively, they were reaching their new high these days. Should I sell some/all of them to retain the profit? If the stocks keep rising, then I would regret to do the original decision. Meanwhile, should I use the 10~15% cut-loss border from the 52 weeks new high point to take profit? This method seems more or less go along with the whole rising edge of the stocks in such a crazy cow market.
Answer: What is your original thinking/concept in buying these TWO stocks?
941 and 902 are both the growth stocks. And my buying price is quite low, they all have 50% or more margin to their intrinsic values, e.g. 941~$117, 902~$8.5. In the value investment point of view, there are no way to sell all of them until both of their growth rate were decreasing OR their industries are over competed such that it's very difficult to make profit any more.
In the speculation point of view, if we push up the cut-gain point from the 52 weeks new high of particular stock, in some cases, it can be possibly eating up the rising edge. However, you will be defeated out in some fluctuating days, e.g. 17th August. I think most of the guys would sell more or less their holdings at this day.
So, should we enlarge our cut-gain margin from 15% to 20%, or even more to acquire a longer life during the rising days? I don't know. But if you think your buying action is a speculative one, you should bare in mind that is speculation and take the cut-loss and cut-gain lines in discipline no matter the lines set at 10%,15% or 20% from your buying price and the 52 weeks new-high point.
You can't earn everything in the world, don't be greedy!!
