10-02-2016, 01:03 AM
(10-01-2016, 10:24 PM)crimsonghost747 Wrote: A couple of small things to add.
-keep in mind the tax consequences of selling your holdings. They can make a big difference.
-If you find a great opportunity in company B, that doesn't necessarily mean that you should sell company A. There are other ways (such as margin accounts) that allow you to get some cash fast in order to take advantage of the opportunity you've found.
- Ofcourse the tax has its role here.
- I was looking at it in a different angle. I have a screener by which I decide what stocks to buy when I have the money. The screener is based on financial info and dividends related info. If I don't have the money, I don't use the screener so I don't "find great opportunity" when I don't have the money
. I first see that I have the money and then I "activate" the screener. Meaning the stocks I buy are not compared to another stock but compared to their own market indicators.