On your trimming and “house shares” mindset, once you reach recouping the entire cost basis of the position, do you look at it differently as a long term hold or apply the same trimming mindset in future?
It's a tricky one. When I own it in a taxable account then I am way less likely to trim even though this does come back to hurt me at times.
I have noted when I have covered cost basis, then sometimes I get complacent too so I am going to continue to treat it as if it still my initial capital because even though psychologically its different the impact on the portfolio is the same.
I figured something like this, file it under one of those good problems to have! I've always been a fan of "let your winners ride", even if it's a very low % of the original cost basis.
You only need one big winner to cover the weaker performing stocks in a basket.
And your strategy showed just that.
On your trimming and “house shares” mindset, once you reach recouping the entire cost basis of the position, do you look at it differently as a long term hold or apply the same trimming mindset in future?
It's a tricky one. When I own it in a taxable account then I am way less likely to trim even though this does come back to hurt me at times.
I have noted when I have covered cost basis, then sometimes I get complacent too so I am going to continue to treat it as if it still my initial capital because even though psychologically its different the impact on the portfolio is the same.
I figured something like this, file it under one of those good problems to have! I've always been a fan of "let your winners ride", even if it's a very low % of the original cost basis.
Yes but sometimes it can go wrong also haha if the whole move reverses. I will likely only sell if it breaks down technically or some bad news comes
I used 4 examples and actually CATX which I sold at flat went up 70-80% after I sold too
Did you delete my comment? Why?
I posted 3 replies by accident as was having internet issues and was trying to delete my own incomplete reply.
Please repost your comment.
But yeah position sizing is important and my pick was good, I’m pleased with the >50% booked returns