No. of Recommendations: 7
when selling then buying how do you execute? Sell first then buy new position or keep cash on hand?
Hi tonyd, the usual way to update your portfolio to the latest stock screen results is to sell all the stocks that have left the screen for that 3-months (or 12-months, or whichever re-balacne period you are using) and then divide teh cash up equally for teh stocks that are replacing them.
For example:
1. If your portfolio has stocks A, B, C, D and E.
2. When the date is reached to rebalance (say 10th of the month or as you decide), D and A have gone and replaced with F and G.
3. Sell 100% of D and A. Say that gives $22,000.
4. Purchase F with just under $11,000, and purchase G with just under $11,000.
5. Wait for the next re-balance period and then repeat from step 1.
- Manlobbi
