Still a coward
Despite my discovery that market timing hinders my performance (see earlier post), I remain a trading coward after the market has kicked me in the teeth. I've taken a position in GHM and nothing else. I would like to see some strength once again before I make any more commitments. I think the market is on the fence between a good rally and an awful downturn and I am too emotional to risk money in a downturn (I might even cry a bit).
Some day maybe I'll be able to put my money where my mouth is and trade mechanically no matter what the market conditions are.
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1 comment:
I completely understand where you are - it's ridiculously difficult to follow a stock screen downwards. I too cannot get myself to completely do this even though it would enhance overall returns.
A couple of thoughts I've had:
One - when the market is ugly, go in with 50% of the equity I normally would. That way I limit risk and get some upside.
Two - short sell. Yes - makes me nervous. What I'm thinking about here is when the market goes South, take some portion of my equity and invest in one of the double-beta inverse ETF's (same as shorting with 2X amplified returns). So if the market is tanking, invest in TWM, QID or SDS as a hedge. If I put 20% of my equity in say SDS - I have 40% hedge on my portfolio.
The second is definitely a little more "interesting"
Anyway - these are my thoughts. Interested if you have ever thought of anything like this.
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