Tuesday, 11 April 2017

Is it Okay to Sell my MBT @ 10% Gains?

This blog post is dedicated to a newbie asking, Is it Okay to collect 10% gains from MBT (Metrobank)? At the current movement of PSEi with 7.2% up from March and still continuously rallying, I was reminded by this question that I'm holding MBT in my stocks portfolio with 15% gains:

The question "Is it Okay to Sell @ 10% Gains?

Let me share 3 important considerations in selling a stock with 10% gains:

First, Contentment. If you are trading and trying to catch short term gains then answer is "YES". You can collect  the 10% gains. If there is a stop loss there is also a " stop gains" (my own term) you should always have a trading gains at a specific target price, it can be 10%, 15% or 20% depending on your set trading gains.

Second, Original plan. From the time you bought a stock then you must know what is your original plan. Is it for short term or long term? Is it a fund for retirement or wedding day? If you are a value investor, you might stick and keep this stock at your portfolio for long term. I will say "No", don't sell yet, I can still see an upside for long term. My target price is 95.

Third, Reinvest. Yes, you can sell it and reinvest the gains in other stocks. Different strategies but same goals, " to earn and collect gains". Some of us will still have a bleeding portfolio but the bull is running the show.

I hope you learn something from this blog.

Sincerely yours,

Jonathan I. Ruiz CPA, MIB

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