Trading vrs. Hold...
In my investment world I use three different investment accounts at the same time...
Each account has what I would consider anchor stocks...
My first account is basic in it's goal.. Make as much long term money as possible... Long term here is the goal and most positions are held for years, not months and it is a margin account... I will use a short fund as a hedge If I really do not like the market,,, This account rarely has more than 12 stocks and 15 is the most that I can remember... Four stocks make up 60% of the portfolio...They are NVR,,ACRG,,XOM and BR...They are all three year or longer holds... The others are FRGB,,NARA,,IMH,,FBR,,which have been held less than two years and new in the last year ALY,,TGIS,,LNDNF,,HMNRF,,WTOTF and NKRSF...Stocks in this account are held and usually when a new idea is found the least performing stock goes except for FBR,, It is my favorite brokerage firm and pays a hefty div...In the past our years aprox. 40 names have appeared in this account..
The second and third are sector trading accounts... One is for banks and the other is oil,,,One sector never seems to do well when the other is,,, I sometimes will buy others but not as a rule..If I am as now trading oils ,,,the bank portfolio has it's cash transfered to oil and if necessary the other way around....It has only been a couple of months or so since I started lighten up banks...Yes some banks remain but they are mostly reminder positions...
In the trading account I keep no more than 15 positions and have three or four that make up over half of the account... I will trade names that I hold in the first account... Trading is fun and over a period of time my first account always seems to win...But if I was not trading my good ideas would be farther apart...
I think trying to manage and stay aware of more than 20 or 25 companies is impossible and I still believe in NEVER average down an investment....The second is that in this internet world every stock is only 1 press release away from a 50% markdown..
At presant IMH is probally the next to go if I can replace not only the stock but also the div.. I think it is the best REIT in the country..
Please post stock symbols first in all your posts. If it's a foreign stock, please also list the US pk equivalent symbol...
