I normally use good-to-cancel orders for the CDx3 issues that appear on the Seller's Calendar. Does anyone know if these orders should typically be cancelled once the new, monthly Seller's Calendar is issued (assuming the order isn't filled)? I've been leaving them active but only now realized that doing so might not be the proper procedure per Doug's book.
Thanks!
Carl
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1 - Click To Post Comments:
Hello Carl-
Thanks for your post.
If you are following the preferred stock investment method that I describe throughout Preferred Stock Investing, selling activities happen during a "seller's market" for CDx3 Preferred Stocks when market prices tend to be much higher.
Although the current crisis-fueled "buyer's market" has been weakening since March of this year, we are still a ways off from seller's market conditions (as measured using the tools described on pages 80-96).
Whether or not to sell is, of course, entirely your call. But please remember that the investing results shown throughout chapter 15 of Preferred Stock Investing were obtained by selling during a seller's market, not during a buyer's market (now).
I have no data regarding your question so it is difficult for me to answer and I generally avoid speculating.
I do know that during past seller's markets for CDx3 Preferred Stocks some investors will set automatic sell order triggers in the amount of the Target Sell Price. But I encourage such investors to remember that, per the Rule of Buyer/Seller Behavior (page 43), the market price tends to peak on the last day of the dividend quarter so by using an automated sell order, that can trigger on any day, such investors are proabably selling for a lower market price than they would have otherwise.
Many Happy Returns.
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