um, rudy, I'm the last guy around here you want to take advice from. But since you asked...
Regarding my own strategy, I've settled into a two-tier portfolio: a large core of pure GG LTB&H, and a much smaller pot devoted to swing trading, usually with options. The only reason I do the active stuff is because I don't have the discipline to sit back and do nothing like Buckley and Brown, and a little designated trading pot helps insulate the rest of my account from too much turbulence. Tortoises do the best in the end; if are one or can turn yourself into one, that's the way to go. Unfortunately I'm not quite there yet.
What I've done with that trading, meanwhile, is similar to what you've outlined--what someone else has called the "G&K Fallen Angels" strategy. Even though I've only done ok here, my hunch is that it can work pretty well, if you a) stick to excellent companies; b) wait for real drops to make your buy-ins; and c) conceive and follow a disciplined exit strategy for each trade. I screw up by not being disciplined enough on b & c.
BTW, a guy named Jacob Snyder follows almost exactly the strategy you describe, and has recently taken a healthy position in QCOM. Check out his posts on the QCOM "Buy Range" thread to see how he does it, and the upside and downside aspects the strategy has.
good luck,
tekboy/Ares@doasIsay,notasIdo.com |
