Replies to post #1873 on NGL Energy Partners LP (NGL)

[jugs]

Cost basis takes a back seat for me when I'm building positions. I'm looking at my $20 mid term goal and $10 or $14 is irrelevant in that context.

I'm looking to add more NGL and will continue to do so...until I feel it's time to close out my position. Nothing ever stays the same in life, so either I get behind things or find myself out of the running.

Why don't you ignore everything but...

1. Your desired position size?
2. Your upper price limit?

This sets you up for numbers you'll like down the road, something extremely important in my opinion.

I want another thousand units. That will complete my journey in terms of accumulation. Sub-$13 is probably going to be my acceptable price point but I'm not set on that yet. I need to watch things settle a bit more, first.

Also, I know you sometimes regret taking all-or-nothing action, including closing out positions. A way to avoid making lamentable choices would be to assign core and trading subsets within your portfolio.

Say you build to 6,500 units. 6,000 might become your core hold while the other 500 are then held in reserve for play. That 500 can be cashed out when NGL surges much higher and maybe you want to start a position in something else? So you sell at a high, start that other pick but continue to hold your 6,000 units of NGL safe from liquidation.

I do this routinely and have done so for many years. I can't recall ever regretting having sold.

This explains why I'm sticking with DK following the swallow of ALDW. It has paid off enormously. By keeping half my position, I positioned myself to take advantage of opportunities...I hold 3,508 shares. Of these, 3,000 are core shares while 508 represent my trading shares. I've been thinking of selling them for cash to be held in reserve for stock not yet decided.

This approach leaves me protected from myself...something I know could be helpful for you as you can yield to impulse on occasion.

I hope this helps you. Others here may come up with their own ideas and I'll look forwards to that, too.