It's certainly an interesting topic. I have always been conservative and clearly this fits my nature much more than throwing around with these huge sums on individual stocks. Ever since I started doing this for a living in 2009, I traded like this, spreading the risk around big time and always starting to take my profits early and then via stair steps. The negative is you miss these incredible gains on some of these stocks, the positive is you will have a lot smaller drawdowns and your portfolio is much more stable overall obviously. The funny thing always is that the few situations where I let most if not all gains in after an already nice move, turned out to be complete desasters, every single time and that's the point. The chances that not taking your profits in stairsteps and letting ride a big amount of money will turn out negative, is much higher in these stocks than the other way around.
Granted right now there is huge liquidity and there are a lot of big runs in the otc but there have been very different times over the years and I'm just not prepared to let a 8k or 10k or 15k gain disappear. It might be a weakness to a certain degree but then again it's just a conservative attempt to money and risk management. It's beyond imaginable for me to keep 20 or 30 or 50k bucks into an TSNP at 06 while the stock just ran from 0001 to 06 in a few weeks, is highly and totally overvalued by any means, has a friggin O/S of 4.5 billion and is a complete POS by any means for now. It's like going to vegas and that's not what I wanna do for a living.
But yes to open up a bit in terms of less strict money management and some higher position sizes if I'm very confident on a stock, could indeed be a good thing. One could argue that with all the runners I was involved this year (and which of we spoke about here), I shouldn't need to work ever again but that's not the case so I see the point somehow. That said hindsight is always easy right.
