Sooner or later it had to happen… 🙂
Some time ago I published a post where I was outlining a new idea that sprung in my mind related to some automatic sell orders that would trigger when a certain stock would hit a certain price level. (Here)
As it happens Stanley Black and Decker (one of my two experiments) hit the price and was sold for a decent 14% profit, nothing major.
Immediately the price went up (it seems that I managed to predict the bottom of the day) but now thanks to the Chinese economy woes it went back further down the mark that I set originally. If all goes “well” and if the stock traces back to the price I bought it 1 year ago I will consider adding it again to the PF.
One thing is clear from this strategy: it only works on stocks that I do not mud “loosing”. SWK was one of those, mostly because the dividend yield after the double taxation was rather risible (just above 1.2%). the company is a solid one and I wouldn’t mind buying into again, but if that doesn’t happen… well, I am not going to loose sleep over it.
At the same time Verizon (VZ) was added to the Portfolio. This is not a casual move of course, I need to decrease the weight on Industrials (SWK) and increase Telecoms, so instead of adding more AT&T I went for VZ for diversification purposes and also because they have been pretty badly battered during the last 6 months so the entry point was sweeter.
Yes they have debts, but they also generate an impressive cashflow which is a major help in paying dividends. Telecoms are generally pretty badly indebted businesses anyhow… They are like Utilities, more or less.
These were the two last movements in 2015 by the way!
In total I have traded 114 stocks and sold 15 of them, a total of 130 trades, almost 10 each month… No wonder that the trading costs are so high for me!! 🙂