In my May 22 post I mentioned my plan to cash out of individual stocks and move on. At the time, all three of my Canadian banks stocks, BMO, RBC and TD, were very near their fifty-two week highs. My strategy, if you can call it that, is very simple. Figuring that they reached a the high sometime in the past year they'll get there again soon and I'll take that as my exit point. I placed three sell orders, one for each bank stock. Figuring that I'd like to net the fifty-two week high, each sell order was for the previous high plus a few cents to cover brokerage fees. Too easy!
My guess was that I'd be out of these long held stocks within days. Not! Could I have been more wrong or timed things any worse. No sooner did I decide to sell, my bank stocks and the whole TSX hit the skids. RBC is off 5.47%. BMO and TD not quite so much. I now figure it could take many weeks or even months before they get back into the range of my sell orders. That my friends is why I've decided to get out. Yes, over the long term they do tend to go up, but the crazy volatility is enough to drive one to drink. Guess I'll be holding for a while yet. In the meantime,
My guess was that I'd be out of these long held stocks within days. Not! Could I have been more wrong or timed things any worse. No sooner did I decide to sell, my bank stocks and the whole TSX hit the skids. RBC is off 5.47%. BMO and TD not quite so much. I now figure it could take many weeks or even months before they get back into the range of my sell orders. That my friends is why I've decided to get out. Yes, over the long term they do tend to go up, but the crazy volatility is enough to drive one to drink. Guess I'll be holding for a while yet. In the meantime,
Good Luck & Happy Investing!
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