I wasn't planning on writing this so soon, but I feel I need a bit of space to think.
First off, a few updates
So, a few days after my last post, the US imposed sanctions on some Russian businesses. As a result, EVRAZ (LON:EVR) took a hit. I mentioned in my last post that I was considering a 'cut if -10% compared to one month/week ago rule, given my bad run with Stock Spirits (LON:STCK) where I lost a lot of gains. As a result, I sold it, and bagged 30% profits. I did write a post about this, but it has disappeared for some reason.
I also decided to move to monthly reviews, based on some of the constructive feedback I've had from the comments. At the end of April, I bought into Camellia (LON:CAM) at 12,350.00p - a well ranked conservative mid cap. I also topped up RMG (which was underweighted when I bought it due to lack of capital. A couple of days later, I was finally able to sell Wizz Air Holdings (LON:WIZZ). I'd been watching it decline slowly for a while, but it hadn't met any sell rules. In the end, it's stock rank slipped enough for me to sell it down 8%. I decided it was close enough to my review date, so reinvested the money to buy back into EVRAZ
Should I have kept EVRAZ? With the benefit of hindsight, yes. However at the time, even though I felt it was likely to bounce back, the idea of going to a rules based system is that it prevents me using my noggin when I know that I'm not the best as making these kind of decisions. I bought back in at a higher price than I sold for, so I've got fewer shares, but I'm still in it and seeing good gains. I think there is a need for a more refined sell rule for when bad news (other than a profit warning) hits a company. My fear is stock ranks take at least a day to update, and sometimes bad news doesn't hit the QVM ranks until a fair while…
