Earlier today I made two trades in my Trading Account that I wanted to keep you updated on.  Both of these trades are examples of my investment strategy that defines my portfolio management approach.

First trade was Harris Corporation (HRS), which hit a sale point on appreciation yesterday to a 30% appreciation level.  As you may recall, I have targeted appreciation levels which are set at 30, 60, 90, 120, then 180, 240, 300, 360, and 450%, etc.   When a stock hits these levels, I sell 1/7th of my holding and use this sale on 'good news' as a signal to add a new position (assuming I am not already at my maximum 20 position portfolio size).

I sold 17 shares of HRS, representing 1/7th of 120 shares of the stock, earlier today at $65.81.  My shares in Harris Corporation were originally purchased 1/31/07, at a cost basis of $50.05.  Thus, at $65.81, this represented a gain of $15.76 or 31.5% since my original purchase.  Since I am under 20 positions, this entitled me or gave me a "permission slip" to add a new position.

When would I sell Harris (HRS) next?  Well, being optimistic, if the stock should rise to a 60% appreciation level or 1.60 x $50.05 = $80.08, then I would be selling 1/7th of my 103 shares or 16 shares at that level.  On the downside, after a single sale at a 30% appreciation level (much like what happened with my WWW shares), if the stock should decline to break-even, then ALL remaining shares are sold.

HARRIS (HRS) IS RATED A BUY

The other sale today was my sale of my shares of U.S. Global Investors (GROW).  In this particular case, I sold ALL of my shares which worked out to a sale of 245 shares at $19.7101.  These shares had been purchased recently, in fact they were purchased 10/10/07 at a cost basis of $21.27.  Thus, I had a loss of $(1.56) or (7.3)% since purchase.  I initiated the sale when the stock was at a loss of (8)%.

U.S. GLOBAL INVESTORS (GROW) IS RATED A HOLD

I have reduced my rating on GROW to "hold" because nothing fundamental has changed.  However, my own sale was due to a technical price change and nothing fundamental that I have determined.

The question arises is what I should do with the proceeds of these two sales.  My sale of HRS entitles me to buy a new position, and my sale of GROW requires me to 'sit on my hands' with the proceeds.  I shall be doing both.  That is, I shall look for a new position based on my HRS sale.  However, I shall not be replacing my GROW position with a new position.  I hope that makes sense :).