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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: Lhn5 who wrote (7596)	3/9/2006 3:50:48 PM
From: ahhaha	Read Replies (2) \| Respond to of 24758

If what you EXPECTED to happen doesn't, get out. You take a position at 10. It immediately drops. What were you expecting? Now, answer the question. Don't wait for a turnaround, don't make excuses, just get the hell out. If you need a percentage, 5%. Then your answer is 5% cut losses. You will accumulate 10 5% cut losses before you get one 50% gain. The trade-off rate is a function of frequency of trade, duration of hold, but never of cut loss rule. The average expected return in trading stocks is about -10%. So how do you handle your own portfolio? I run money so I don't divulge what I do. What is you asset allocation and do you change it over time? Asset allocation is crap talk for amateurs and pseudo academics. The proper way to manage money isn't recorded in any books I know. The academics have no clue. I never try to diversify and I don't have many positions. One may end up diversified but one shouldn't seek to do so a la academia. You go where the ideas are, and you run with it.