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This morning, I sold half of my investment in Alibaba for a 51%<\/b> capital gain.<\/span><\/p>\n It has been a long time since I last did any trading and this was a pretty nice one.<\/span><\/p>\n A 51% gain in less than 2 months was not something I was expecting.<\/span><\/p>\n However, this is what Mr. Market does.<\/span><\/p>\n We get surprises, pleasant ones and also nasty ones.<\/span><\/p>\n It is like opening a box of chocolates, someone said.<\/span><\/p>\n All we can do is to identify what we think are good entries and the rest is up to Mr. Market.<\/span><\/p>\n No one really knows what Mr. Market is going to do in the next few weeks, months or years.<\/span><\/p>\n I thought the downside was pretty limited.<\/span><\/p>\n I thought the numbers looked decent.<\/span><\/p>\n I got in when the chart said there was some long term support.<\/span><\/p>\n And I left the rest to Mr. Market.<\/span><\/p>\n If the price had gone lower, I had a plan as to where to buy more.<\/span><\/p>\n If the price should move higher, I had a plan on where to sell.<\/span><\/p>\n Alibaba wasn’t a large investment for me and it has become a smaller investment now.<\/span><\/p>\n As it doesn’t pay a meaningful dividend, the way to get more cash flow out of this is to trade.<\/span><\/p>\n This reminds me of the time when I was trading the Hang Seng Tech ETF and I think some of you might remember that.<\/span><\/p>\n So, what is my plan for Alibaba now?<\/span><\/p>\n My eventual target price for Alibaba is still HK$160 per share or so.<\/span><\/p>\n I talked about this before and in case you missed it, see:<\/span><\/p>\n
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