I only know one way to trade. But, I don't always trade. When I don't have the time or I want take it easy, I will either buy and hold sector/index positions, or go cash.
The nearest thing to core position that I hold is my "tape fighting" positions and income positions. Tape fighting, as I've explained, is a high profile growth sector (sometimes a stock) stock that has fallen very hard and I am certain will still be around 5 years from now. Two recent examples are XBI (not there anymore) and INTC (just starting with it). Income positions are high dividends and potentially bonds (not a big fan of bonds). These are typically things like SBRA, OHI, SMHB.
This, BTW, is a good example of my barbell approach. Dividend stocks and biotechs are at opposite ends of the spectrum. And in each case I take the extreme at both ends (I owned SGFY until recently). And when people think of dividend, they usually think some utility or big cap laggard. But not me. I still choose the extremes.
For stability, I maintain a fair amount of cash and usually position gradually, except in bear markets where something drops 80% and I want to catch the bounce. |
