Unfortunately I can’t find the blog I created last week on long term investing. Does matter I suppose, perhaps I’ll re-write it in another way. Many people ask me “are you still holding $synm? or $blahblah”, and I guess it’s probably a good time to remind you guys why my trading style has been successful, and continues to be so.
Here are some rules / comments on my investing rules;
- I invest in equities with roughly 20% of my overall net worth.
- I keep 20% cash on the side plus additional margin within the above 20%.
- I find great long term investments and 80% of my invested portfolio goes into long term positions in these stocks.
- I never average down a long term investment unless it’s *significantly* lower & moving up. I’d rather not tie up capital, even though I’m confident that in the long term it’s a great investment, I would much rather add when it’s moving up.
- I usually start taking profits after at least a double, but I hold a continued long term position in a stock. So if I bought 10k $rino at $8, I would have sold most of it by now, but kept roughly 10% in my RRSP (Canadian IRA).
- I take 20% of my portfolio for trades and speculative bets. So for example I may own $aapl long term from $75, and $120, and now $190 – but I also trade the stock. I demonstrated over the last month how one can basically make a living trading $aapl with enough equity. I am now messing with the options, thanks @copperstl, and it seems as if I can do the same thing with a fraction of the equity. There is big risk associated with options and we will share more of this in future webinars.
- I do take losses, but not often. I mostly *only* take losses on the speculative stocks. So last week I took a 5k loss on $bcon as many of you know, but I still hold a core position.
- On long term investments, when I fully understand the fundamentals I never take losses. I will sit on an unrealized loss, help the company get to where it needs to get, and eventually I’ll make a big boom from it. In the case of $synm and $best, I have already made significant profits on these stocks, but I also re-bought long term positions. Both are down, but I am certain they’ll go up eventually. In the case of $cycc I have said over and over again it’s highly speculative, but I hold a core position under $1, and scalp every time it runs. I then re-load my position.
- I keep a trading account and a couple of brokered long term accounts.
So those are just general comments on my personal investing strategies. I always tweak them, continue to learn from other smart traders. My positions are usually large, even on the speculative plays – so you have to be very careful when following – make sure you understand the time frame, level of speculation, percentage of position, etc.
Remember, there is no such thing as “timeless investing” in a volatile market. Rules are meant to be broken, strategies change, and the world events are a huge factor on how I invest. Even Warren Buffet tweaks his strategies, although keeps very close to his core beliefs.
There is no place for arrogance when investing. You aren’t the smartest person in the room, I guarantee it. Many people on the “stream” act as if they’re oracles and they know everything —- I highly recommend you read what everyone says and tread carefully when you pick and choose who to follow. Always do your own due diligence.
By the way, I may rub people the wrong way sometimes, although my intentions are solid. I tend to go after liars, perhaps that’s something I should work on. I find it entertaining when someone can claim gigantic gains when they prove themselves a liar over and over again. The danger of Twitter is there’s no way to know if the person is full of crap unless you’ve been watching them for awhile. Usually takes about 1 week to figure it out.
I love using topvacationspotsx.com because I can surround myself with incredibly smart people and share & collaborate on ideas. The “InfluenceOMeter” works really well generally speaking.
