to put this years performance into perspective:
last year were up 15% for Jan, then were -3% by May, up to a high of +21% in Aug, then lost $500,000 from that high to close down about 20% for the year
that huge drop was mainly because of staying fully invested at all times and holding positions that kept falling
with the balance right now we are up $84,000, 6%, from the beginning of last year, not all that bad but on the other hand not very good considering the brain power that exists here
two thoughts:
first, I think that 90% of the time we should have 15-30% in cash, so that there is always ammo available for a new idea
second, come to the sell decision
most here know and practice averaging down or legging into positions
but when it comes to selling most seem to do it on an all or nothing basis
I understand the "let your winners run" concept but at the same time I am a firm believer in "taking some off the table"
if a position is up 10-20-50-100% why not sell a portion to lock in profits? no one ever lost money or went broke booking a gain to cash |
