Happy Holidays Top Traders!
In case you missed the memo, PSW is taking all of it's portfolios back to CASH!!! because we feel the broad markets are grossly overbought and we are concerned there will be few buyers for our positions if the market does start to turn down (low liquidity).
So, better safe than sorry and that includes all of our positions, even the Top Trades.
- Just Another Manic Monday – Tax Free Edition
- Tempting Tuesday – Stop Buying that Dip and GET OUT!!!
- Weakening Wednesday – How Nice to Watch from the Sidelines
We will continue to pick individual trades, like the one below, and there's nothing wrong with keeping good positions if you feel you are well-hedged and don't mind riding out a 20% correction.
My attitude about that is that, if you have $130 now after starting 2017 with $100 and the market falls 20%, then you'll have $104 and, when the market comes back, you'll have $120 again.
We, on the other hand, if we are right, will still have $130 when the market pulls back and $150+ when it comes back as our new positions make all the gains your old ones will. On the downside, if the market rallies 10% more, you'll have $143 and we'll have $130.
On the whole, it's a risk/reward game and I'd rather miss gaining $13 than losing $26 as I can always make another $13 with $130 but making $26 with $104 is tricky!
From our chat room:
Portfolio/Pat - LOL, would you like to send me more information. I guess I can get into the business of doing individual reviews for people who don't even bother subscribing. Actually I can't - I'm not a financial adviser and that's simply not a good thing to do! In GENERAL, you have to use your head and look at each position and think about how you feel about it - especially how you WILL feel if the broad market goes down 20% and your positions are down 10%-40%.
