Selling too early (#441)

Simon Shares

• Prosus (JSE code: PRX) selling another 2% of Tencent.
• Purple* (JSE code PPE) trading update for six months ending February. HEPS of about 0.85c. They did 1.54c HEPS for full-year ending August after a loss in the first half last year. So this period showing slower growth.

• Growthpoint (JSE code: GRT) announced that their healthcare fund tops R3.2bn with Cintocare Hospital acquisition.
• The JSE is investigating PPC (JSE code: PPC) trades amid insider trading suspicions as the share moved ahead of the announcement last week.
• The IMF now says SA's economy will grow faster at 3.1% in 2021 and 2% in 2022, but it will take over two years to recover from the 7% collapse we saw last year.
• Janet Yellen wants all countries to have a minimum corporate tax rate.

* I hold ungeared positions.

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Selling to early

This is a problem for both traders and investors.

Part of the problem is the thrill of a winner, we've made money and we want to lock in that profit so the thrill doesn't go away, and we sell - but we sell way early.

The bigger issue is what are you trying to achieve?

• As always know your strategy and know why you entered a position.
• Be real about taking profits, that is why we're in the market.
• But balance that with giving winners space to win even more.

Analysis of previous winners you exited early. Why did you do exit and what could you have done to stay in longer? What about some you exited at the right profit point?

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