Advantage of looking at your trades as a Sequence vs one shots

themickey said:
My experience as a stock trend trader.
If trading small size, this allows for a greater number of opportunities and allows to grab more opportunities because of time. In other words, as time moves on you have more balls in play.
This only works if you are very careful in selecting high probabilities. High probability being the market is bullish, the stock according to your criteria is the pick of a bunch, carefully screened.
With time, holding a large portfolio of small sizes, it's easier to stay in the trade for longer because each individual risk is smaller.

The markets over the years keep rising, the bias is upward, you can't profit from this if you are not in.
Jumping in and out becomes tiresome, most stocks require time to work out.
On drawdowns, these become opportunities to add to positions, not exiting on drawdowns but entering with incremental small positions.
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Sounds good Mic, but are you outperforming an ETF like SPY on a consistent basis?
 
deaddog said:
Sounds good Mic, but are you outperforming an ETF like SPY on a consistent basis?
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To be honest, yes, but for one thing.
A while back (in my previous life) I bought too larger positions in gold stocks which I still hold and gold last 12 months has detracted rather than added.
If my positions in gold were much smaller the negative effect would be smaller.
I have no regrets on my gold stock selections, just the sizes are too large.
 
themickey said:
To be honest, yes, but for one thing.
A while back (in my previous life) I bought too larger positions in gold stocks which I still hold and gold last 12 months has detracted rather than added.
If my positions in gold were much smaller the negative effect would be smaller.
I have no regrets on my gold stock selections, just the sizes are too large.
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I know we differ on what we consider large positions, can you give some context. My small positions are 5% and my large positions are over 20%

Gold stocks seem to be making a comeback. I hold FNV and got out of KL but it seems to be trending in the right direction.

Any reason you held on to the gold stocks when they started to trend downward?
 
deaddog said:
I know we differ on what we consider large positions, can you give some context. My small positions are 5% and my large positions are over 20%

Gold stocks seem to be making a comeback. I hold FNV and got out of KL but it seems to be trending in the right direction.

Any reason you held on to the gold stocks when they started to trend downward?
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These days for me just over 1% is ample as max position portfolio size when buying, should it for example double, well I would leave it to grow but exiting only on a market stop or if it perhaps changed its business model, eg, began to announce profits would slide.
 
themickey said:
These days for me just over 1% is ample as max position portfolio size when buying, should it for example double, well I would leave it to grow but exiting only on a market stop or if it perhaps changed its business model, eg, began to announce profits would slide.
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Are you a trader or an investor?

I know some people who's strategy is to buy 1% positions and see what happens. If the stock goes to zero they are out 1% but if it ends up being a 10 bagger then they get to brag about it. Problem is they would be better off with SPY.
 
deaddog said:
Problem is they would be better off with SPY.
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Trouble with that theory, holding all eggs in one basket, are you really prepared to risk 100% of your finances with an ETF company?
Another is boredom, what a miserable life! :)
Trading in part is about entertainment imo, getting paid to have fun.
 
Like owning a house, yes there is lots of capital tied up in one investment but you get to have fun in it, SPY is boring.
 
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