It’s has been awhile since I blogged on this pages, so I thought today might be a good day to put out a blurb.
I have been long this market for a while with a simple motto: it’s a bull market, you know.
Stock market, investing or trading to me has very little to do about what to buy, but more about how.
You can make money in any stock, etf, derivative or bond if you on the right side of the trade… Right side of the trading is the ONLY thing you should be curious about, not What stocks to buy (JMHO)
After all isn’t it all about the right side? Many search for it by trying to nail every market move, watching every tick, jumping at every possible market fluctuation. Oh well: if that tactic works for you – great, I admit I do it occasionally in my “crazy trading port”, after all I have created it just for that – crazy trading, I have been lucky enough to score high 70% YTD, but it doesn’t now excite me at all. This port is not what I am about and simply there for entertaining purposes.
My other ports is what it is all about – the returns are much lower that their “crazy” brother, but they present what I think is The Way To Be. I can sleep well holding them, I am never pressured to sell or buy positions there, I simply feel good holding them – they make me comfortable. Of course they are built for bull market, how also? The only reason I sell stocks there is to rebalance them – balancing these ports are important as in no time I don’t want to be greatly overweight in any particular position. All ports have cash balance which varies at any time 10-15%, the trading port sometimes can go 100% cash, but most of the time 100% invested. In this ports I do not search to nail a right stock, I am not that smart. I am looking to find the right side of a sector, global market, commodity or currency. It works for me, it doesn’t require a lot of work and maintenance and it is great as I do not want to spend a lot of time on it.
My ports always generally have been well represented with Canadian stocks, Canada doesn’t have many sectors: Financial, Mining and Energy would cover most of the economy (ok, ok there is also RIMM and LULU lol). The interesting thing about owning Canadian stocks is that you get built-in leverage with them – do know if many of you know that but $CAD is on the tear these days and the higher market goes in the world the higher $CAD will go, after all – $CAD is commodity currency and BB wants higher commodity price, period… so in retrospect FED wants you to buy $CAD, sounds crazy I know.
Anyway, what I am trying to say here is stop jump around stocks so much, step away from you monitor and see THE WHOLE TREND – it’s a bull market, you know.
In other news: stocks DO go down, it’s simply NATURAL.
Good trading,
Mr.P

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