Top-slicing profits

Sunday, 14th November 2010 16:18 - by Boredmum

If you are a regular reader of my Blog, then you will know that this year has been tough. Not tough to the extreme of losing money; just making it on paper and watching it go again. I experienced this pattern around 4 times on a decent 20% increase. What could have been an 80% increase amounted to nothing as I was either waiting for more and then watching it slip back or making profit on a share only to take a ‘hit’ on another. I remember thinking ‘Oh no, I’m coming up to 20% again, something is about to go wrong’. Well, I was correct in my thinking. Now this time around, things were a little different. A lot has changed for me recently; I’m more confident in my decisions. Realising that I was yet again - for around the fifth time this year - coming back to the dreaded 20% portfolio increase, I reacted differently. I was lucky that I was experiencing some fantastic increases. Mobilewave (TIDM code: MBW), that I discussed last week, shot up over 60% in a day and I sold half. If it drops back, then I will just pick them up again. Berkeley Mineral Resources (TIDM code: BMR) shot up over 30% in a couple of days. That was also top-sliced as half went. In my trading account, Urals Energy (TIDM code: UEN) was sold for a profit, whilst I still held them in my investment account; and half of my Zest Group (TIDM code: ZEST) shares were sold at a profit. The thing is, if they go on to increase, then so be it. I still hold some of them. Alternatively, if they fall, then I can always consider either picking them up again or even just moving monies elsewhere. The point is that I’ve moved to hold a decent bit of cash. I have locked in profits and I’m ready to move. Long-term holds may be different, but if you want to be locking-in profits, then you have to consider top-slicing on any news-driven spike.