After the market opens up at 10pm, I am planning on closing out most of a position I took on Citibank.
Why did I take the position?
1. The stock had taken a horrible dive due to subprime markdowns;
2. I did NOT take a huge position. I took a calculated risk.
3. It was not intended as a short term trade. At the reduced valuation, I was willing to wait 2-3 years to profit from their inherent franchise value.
Why am I taking profits?
1. Bulls make money, bears make money, pigs get slaughtered.
2. By reducing my position by 1/3, I bank enough profit to dramatically reduce the risk of my long term investment.
Other strategy: If the stock goes back down below 22 again, I will probably reinvest the position I just closed out.