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.
- 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.