Good Post Slider,
You have convinced me to take a more defensive posture next week. In the last week, I have let my cash position drop to about 18% as I looked for quickies. Nailed KLAC, in at 42, out at 50.5, but still holding the CAM and NOK that I picked up. So now I am foraging around my port looking for trim candidates.
I have a very strict trading discipline that I refuse to violate - once you violate the rule the first time, you start rationalizing and then do it again and again, until the disciple is gone. Think of diets, drinking, sex, etc..
My rule for my main portfolio is this: never sell a stock at a loss. Two exceptions:
1) Stock has broken down on concrete news specific to that company.
2) Rule suspended in month of December to allow tax loss selling
If I am to follow my rules, I need to keep CAM and NOK until I am able to extract a profit. I hold a couple other techs as well with relatively large losses, I'm basically stuck with them for now. So to build up cash I am looking at shaving SFS, which I now perceive as having limited upside potential. If I get some small pops, I will be able to flip CAM and NOK. Furthermore, I recently established a trading position in OEI in the 14's which is now profitable (though I'd like more). If I can liquidate these positions, I can move up to about 40-45% cash, and ready for the next "gifthorse".
Warp |
