Checklist investor, close to my first quarterly rebalance - how to proceed?

Quick facts about me:
- 4 year stock investor;
- stock tips came via newsletter first; now via Stockopedia;
- hit and miss, but refining my stockopedia skills and more hitting than missing now.

When I heard Ed's talk on one of the investor shows, I realised I subscribe to the story fallacy. I have been holding onto some shares, devouring the trading updates, annual reports, only to be more convinced that it is a good story as the share price drops month on month. Regeneron was my guilty pleasure.

So, I decided to try out this checklist investing instead - I raised some money by selling the losers (it's so hard not to sell the winners - but I managed), and selected Tiny Titans UK.

The rules are:
Mkt Cap £m < 150
Mkt Cap £m > 15
P/S < 1
RS 1y > 0
Spread (bps) < 1000
Top 25 RS 1y > 0 in descending order

I invested in the twenty odd shares that I could buy via my broker, a bit concerned with trading fees but I didn't want to sell my winners. The holdings are smaller than I'd like, but it was either do it and learn something, or make excuses.

Rebalancing is quarterly and is coming up and some shares are no longer on the Tiny Titans UK checklist. I divide them into two groups:

1/ Shares that made gains in the previous three months:
- some shares have fallen out of the top 25 / but are clearly in the top 30, some in the top 35.
- some shares have risen above the market cap of the checklist;
- some shares have seen a bid/spread increase and no longer qualify because of that!

2/ Those that didn't;

I think I'll manage to sell the second group, though some of these could be super stocks and I already recognise thàt voice in my head. I will be victorious and sell!

I'd like some encouragement/advice/experiences on what to do with the first group: the winners that fell out of the checklist - do I keep them,…

Unlock the rest of this Article in 15 seconds

or Unlock with your email

Already have an account?
Login here