April 29, 2011

My Stock Sale: Real-Estate Company CBG

commercial real estate company CB Richard Ellis business office
I recently sold CB Richard Ellis Group Inc. whose stock ticker is CBG, earlier this week after I noticed a couple days before the CBG earnings release, the stock prices seemed to be falling on heavy volume. There was a day this week where the markets were generally up as measured by the Dow Jones Industrial Average, Nasdaq, and S&P500, but CBG seemed to be falling. I immediately took this as a Strong Sell signal, and I sold. I had been holding this company since December 13th when I got in at $20.31 per share. It recently reached over $29.50 but began to pull back. I sold on Tuesday, April 26th 2011 at $28.51 per share, rise of 40.4% in four months! I do want to mention, I had been watching and studying this stock and its price movements for nearly 3 months prior to me Buying it. On Wednesday of this week, CBG Released their quarterly earnings and the Earning Per Share came in one cent short of analyst expectations. The Stock has been falling since. To see a broader chart with more info on CBG provided by the New York Stock Exchange - EuroNext website, visit CBG Stock Market Chart.

*** CBG 6 Month self-updating Chart ***

Patience in Stock Trading is Key

In stock trading, Patience is everything! Wait to get in at the right moment. Because its possible to buy a good stock at the wrong time, or even a bad stock at a good time, (don't teach that on financial network CNBC) making sure you enter and exit is so very important! I noticed this stock was in a leading industry and for months, I watched both the stock and the industry. When I believed it was going to rise and rise quickly, I got in. I have embedded a 6 month chart of CBG here. Notice the December month and how the stock just took off. In trading, you almost have to see what is going to happen, then act on it. As you can see, hard work studying this move paid off, as a nice rise in a short amount of time, was my objective with this company. When I bought, I'd just started my website: Investing for Beginners When I took a position in this stock. I want to stress, that getting out as strategically as you got in is as important as ever in my opinion. When you get in a stock, you should have an expectation for how high it could rise. For me personally, I want a 10 point move out of a stock. If I buy and don't think I'll get it, I'll sell and go to cash while I scope my next moves. As I look, CBG right now is trading at $26.71 and had dropped as low as $26.45 (3 days after I sold my CBG position at $28.51). I must admit, although I'm tempted to get back into this stock if it begins rising on heavy volume, my intuition and past trading experience, tells me to take my 40% return with a satisfied smile, now go look for another company to start tracking, and an economy awaits to be evaluated! This also takes patience as it can be tedious and a time consuming, constant effort process it seems. But just like a Wise Trader named Jesse Livermore once said, Patience is Key. I learned to respect it and now experience benefit of its meaning.

No comments: