When to Sell - 2

The most common question I'm asked is when to sell - well after "Which is the best share?" Its a very difficult one to answer as we are all very precious about our purchases and to sell the share often means we were wrong to purchase them - and that's something we don't like to admit.

So, my strategy is based around the answers to the following 2 questions, assume you've bought £5000 worth of stock in company X, so its 5000 shares at £1 each

Q1a After a couple of weeks the share has gone up to £1.10 (i.e. +10%), do you Sell(S) and take the profit, Buy(B) some more as its going up or Leave ((L) and see what happens?
Q1b After a further couple of weeks the share has gone up to £1.20 (i.e. +20%), do you S, B or L?
Q1c After a further couple of weeks the share has gone up to £1.50 (i.e. +50%), do you S, B or L?

Q2a Starting from £1 per share purchase, after a couple of weeks the share has gone down to £0.90 (i.e. -10%), do you Sell(S) and take the hit, Buy(B) some more as its now cheaper or Leave ((L) and see what happens?
Q2b After a further couple of weeks the share has gone down to £0.80 (i.e. -20%), do you S, B or L?
Q2c After a further couple of weeks the share has gone down to £0.50 (i.e. -50%), do you S, B or L?

There are no right or wrong answers to these questions, but I have built my investment strategy around my answers to the above. I'll let you know my answers in tomorrow's blog.