>>In all fairness, you have a lot of losers because you have a lot of different stocks in your portfolio.
That's how you choose to play it, no critisism on that, although if you buy so many stocks it might be more efficient to just buy ETFs or mutual funds. <<
While I don't have that many stock, don't believe the above statement is necessarily true. If you are an individual investor, there are a lof of ways to grind out performance, that you can't do, if you play mutual funds or even ETF's. You can be more tax efficient, by selling destinctive lot's, you can use, small fluctuations in thinly traded stocks, to play a market maker of sorts, buying into these seemingly senseless dips and selling into the spikes, grinding out a few percent here and there. If you own or follow many stocks, there is always something going on that can be exploited, imo. Sure, you are sometimes left holding a bag, but in most cases, these stocks move in often irrational fashion.
The biggest advantage that individual investors have is that they can deal in stocks that the funds usualy can't touch , for lack of liquidity or because they don't fit within their investment agenda. Sure you could try to run a concentrated portfolio but in many illiquid situations, you could only put a few thousand $ in, so you need many of them to make an impact. |
