I've been asked a couple times why I do this, so I figured I'd just post it here once and for all. LOL
When I'm up on a stock, sometimes I like to sell half of my shares for a profit, especially when a stock is running north. Here's the summary of why from another post I made:
It always makes sense when you're up, I don't care how many shares you have. It gives you some profit, minimizes risk and effectively lowers your PPS. If I'm motivated, I'll calculate a new share cost and input that into my TDA account "price paid" column. For example:
1000 shares bought @ $1 ($1000 cost)
500 shares sold at $1.50 = $750 cash - $500 cost = $250 profit
Now you can say you own 500 shares at $0.75! It makes your gains column look very, very nice.....especially when the PPS keeps moving north. And if the stock drops, you have a much nicer "cushion" before you feel you have to sell. IT'S A WIN WIN!
Pretty cool, eh?