nice pun, "religiously" with a "charity"....anyway, your answers may require more verbiage than I can supply in this medium, and you are welcome to do so, if you catch my drift, but, yes, we do "adjust" the "PSYCLE sm", to best fit different objectives and types and styles and needs of each person.....but, normally, we will still be using, the specifically chosen stocks and ind. groups.... i.e., with the depr. techs, one person may just buy stock for cash, with a stop, say, in a pension plan, another, on margin, outside a pension plan, a third, their options where suitable for speculation, a fourth, that company's cvts. for income, or write options (yicch), etc., but, the first steps are still, finding the best issues, then, adjusting to each needs....
anyway, studies have shown, that over-diversifying hurts performance, so, I found, no more than, say, 15 -20 positions for a $ 1 mm need is max., and, for a $ 100 K port., easier, assuming all equities, in the 7-10 position area....hope this helps....of course, everyone's portfolios are fluid, which means, cash, or varying holdings over time, but--- one needs to have enuf $$$ in each position, whereby, one can, say, sell 1/2 if want to take partial profit after a big gain, or, if a position is only up a little bit, and stock looking worse, one can lighten up without feeling one had not made anything...not carved in stone, but works well...
long-side stops: again, depending on the preceding chart pattern, but, generally, are preset (as are targets), on either, a break below recent support, or, the normal bounce back up to the broken level after the break, if the break was too quick/much to have gotten out..
but, experience has led me to rarely actually put stops in, early, because, often, the floor guys rip us off, because they see my order on their books, dig ? so, my stops are real, just initially mental, until I actually enter them later....valuable to know.
long upside sell targets: again, depends on the previous formation, but, generally, up at the previously broken-down-from level, and/or the stocks' still-falling 200 DMA, but, also on how long the base has been, and how far down the stock had fallen B4 you bought near its' lows, dig ? hey, it's never easy, but easier....I also employ some "volume" patterns to see how strong the pot., rise might be/last....
anyway, SIII. still not ready technically ? many others of mine are bouncing nicely, in the tech area, as U know....I found the biggest thing to learn, is having the strength to actually ADD money to a great concept, after it has stubbed its' toe, so to say, S.T., staying with one's system the whole time, adding, after drawdowns....
last, as to one's special fiduciary responsibilities with a charity, so you may need to speak with someone about that as well....later, |
