Robert Freedland

Why I Sold My Shares of Microsoft and WMS Industries

Photo,

It isn't about what makes me happy, although I am glad you are concerned about my good humor. I also appreciate the 'bigger picture' on Microsoft. I do not think Microsoft is going to go bankrupt or disappear from the software scene. I do believe the stock represents great value and shall likely reward investors who are patient and can see far into the future. It is just that my own idionsyncratic trading system requires me to carefully add positions and manage those holdings just as closely. My Microsoft purchase was just for a trade because just like you, I believe that the value after the earnings announcement, was quite compelling and that a rally in the share price would likely result. I simply chose to take that money off the table without my sale being a condemnation of the Microsoft stock which as you will note continued to move even a little higher today.

Why I Sold My Shares of Microsoft and WMS Industries

I am delighted at the enthusiastic response to my trade.

Photo, I am sorry that you believe me to be a moron. I purchased Microsoft in an 'outsized' position as a trade. I otherwise have a very 'disciplined' trading strategy that determines my own purchases and sales of stocks in a defined fashion. Microsoft appeared overdone to say the least on the downside. With the stock moving up a point, I sold that position and saved my equity for another day. My own sale was not based on my view of Windows 7, Apple Computer, the Stimulus Plan, or the price of Oil. It was simply a trade.

Fred, your comment about my $34,000 trading account is amusing. As it is said in Fiddler on the Roof, 'when you are rich, they really think you know!' Perhaps you would prefer to take your investment advice from John Thain or Bernie Madoff? I have other investments that I employ managers to monitor. I write this blog about my 'trading account' to share with readers my own experience. I do not believe that the size of one's portfolio is necessarily related to the wisdom being imparted. I am sorry if I have wasted your own time with such a trivial amount.

351563....fool? It is never foolish to take a profit. I will leave it at that.

Jake, you make a good point. I would have hoped for more on the Microsoft trade. I am not comfortable with this market and am concerned about my overall performance--percentag... wise--as I look to stay ahead of the S&P. I post every single trade I make on my blog. Wise or foolish. The 600,000+ in new unemployment numbers this week should give everyone a pause. The Stimulus plan may not be stimulative, the TARP funds may be inadequate to bail out the banks, and Afghanistan, Gaza, and North Korea may implode.

Thus, with all of my anxiety, it is likely we are near a bottom and climbing the proverbial 'wall of worry'. I know I am not comfortable about things.

Thus I revert to my minimum of 5 positions, and wait for my own signals to be adding a smaller positions as #6 or replacing one of my five as needed.

Thank you for understanding.