Shark School

Click here to view this video on Partial Buys and Sells

Stage three – Portfolio Management: The Key to Success:

Partial Buys and Partial Sales

One can never know the exact point of when to sell a winner or cut a loser, so we implement the Partial buy/Partial Sale mantra as Shark Investors. As sharks, we do not usually sell our entire position at one level or price. We usually sell in pieces. The partial buy and sell method helps smooth our mistakes on entry and exit points. This method of selling and buying also helps to diversify within time-frames. Let's say we have a stock that takes off just after we purchase it. We can sell a portion of our shares into the move, and let the rest of our shares run. This lessens the anxiety that we feel when we want to sell a winner too soon, because we have already locked in some gains from the move. This process works the same way with trades that don't work out. If we initially buy a stock and it sees some downside pressure, we can pare the position back and then monitor it more closely with fewer shares on hand to see if it can act better. We can always add back what we initially sold should the stock begin to act better. Let's let a look at some examples in of how we handle the partial buy/sell process.

 

Please take a look at the A/V presentation below for a detailed look at the partial buy/ sell process in action:
http://www.projectstreamer.com/users/marko/PartialBuy/

The key to stock market success is properly managing your investments after you buy them. The way to do that is fairly simple.

·          Don't be afraid to sell. Think of selling as a form of insurance
·          Have a methodology that clearly establishes exit points.
·          Diversify by stock as well as time frames.
·          Use a partial-buy and partial-sale approach.

The market is a very interesting and wild beast. The only way our journey can be cut short is if we mis-manage our capital. Having our capital intact is the key to longevity, as it allows us to fight another day. The key to successful investing is to plug away each day continuing to grind and fight it out. Investing is a never-ending learning process and we are glad you are coming a long for a swim the rough investing waters with us at Shark Investing.

 

 

Stage 1 - Tools of the investing Shark:
Introduction
Charts
Moving Averages
Volume

Stage 2 – Different Patterns:
Patterns
Fundamental Research

Stage 3 – Portfolio Management: The Key to Success
The Power of Selling
Partial Buys and Partial Sales
Common Shark Language