I have to say the end of Jan. to beginning of Feb. 2014 sale was a good learning experience for me, and I’m grateful that I learned my lessons now rather than later:
- I was emotionally attached to my winners. The rising market made me complacent of selling my winners. I could have profited much more had I trimmed my winners sooner. I need have an exit plan when buying every stock. When the price reaches my level, I should sell without regret.
- The sale helped me differentiate the stocks that dropped during the downturn and stayed down afterward; and the stocks that descended but recovered rather quickly. I’ll dump the former with a little profit, and load my portfolio with the latter.
- The sale also helped me realize that I bought some stocks at a price that’s higher than what I should have.
- The sale also helped me identify which stocks to hold onto or add more to. From now on, I should stop improvising and stick to my list.
- The sale helped me trim the number of stocks to manage. I still have too many. I’m working my list down.
- For as long as the Fed is intervening, buy the dip on a controlled scale.