Lately, I have been reducing my stock holdings as the STI has been steadily climbing in March 2012 to hit around 3000 near the end of the month. In particular, I released those which I had bought at relatively high prices in the past. As a result, my average price for some of the counters which I am holding has become lower.
In the past, I have only ever considered the notion of averaging down by buying more shares of a particular counter. But averaging down by selling instead... as long as the market is heading up, why not? One, yield of personal portfolio should increase; two, paper gains can be locked in and realised.
Currently holding on to 7 counters (see Portfolio Review 1Q10 for 1-3, Portfolio Review 2Q10 for 4, Portfolio Review 4Q10 for 5-6 and Portfolio Review 1Q11 for 7):