When do you sell stocks in this environment?


Traditionally, I've always followed the valuation level sell strategy, having an exit plan for stocks that reach specific P/E, P/B, P/S levels.

However, with the market being so volatile during the last year, I'm trying to reevaluate my approach. They say you should never trade “news”, however, trading news in this environment was quite beneficial for me: from Disney to Charge Point, I was able to secure solid 20-30% gains for pretty much my entire “gaming” portfolio during the last 2 weeks.

And here is where I'm stuck now: market is very illogical and relying on fundamentals isn't beneficial in the short term.

Would it be a better thing to utilize “take profit” strategy on individual stocks, securing specific profit levels on all the plays made on the “trading news”, then reinvest those gains into stable broad ETF, like SCHD which performs relatively good in current environment and is more protected from loses in case there is another drop so that I can wait a better buying opportunity for risky plays when the market gets red?

P. S. I now have about 50k in my Roth IRA and HSA accounts (starting from 20k in the beginning of the year) and use it exclusively for all the risky “news based” trading during the last 6 months, so tax issues aren't a concern for this specific case.

I'm not a bear, but I'm almost confident that many stocks would drop again in fall and winter (Fed is still gonna be proactive, European winter is a shit show, etc). It feels like reinvesting all the gains into more stable ETFs could be a good strategy in this environment.


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