Curious: when someone say they are 20% long miners, does that mean 20% of the maximum you would invest in this sector, or 20% of your trading capitol, or 20% of your net worth?
For me its 20% of all funds I have dedicated to market accts, that includes Pension/IRA/personal
and BTW :for me" I almost never go more than 60-70% long and never use leverage/margin
If I feel my signal is strong and correct I throw the kitchen sink at it, usually over 90% long of the money I have in my brokerage with a leveraged fund like nugt, jnug and now the new one gdxu or gdxd etc. I don't like holding individual stocks as it takes more effort to research each stock and understand it's fundamentals, index funds gives some safety because you get all the top stocks. Soros once said he was a billionaire because he was greedier than most but it's also true the more you have the more nerve it takes to put everything into a trade and of course if you get a drawdown it requires some strong nerves to handle it. There used to be a fund manager on the old Compuserve forum in the 1990's called Michael Lipschutz, he used advance decline oscillators to trade s&p futures, he would take big drawdowns if he thought he was right, requires a strong stomach and heart as your blood pressure goes through the roof, he talked about how it was like looking at a school of fish with the A/D showing when the school was starting to change direction, perhaps the way Newmont is not making new lows right now, the strongest stock is the leader. The more things you are holding the more time it takes to manage it all too. I got nervous last friday and sold everything with a small profit.
Edited by Russ, 09 March 2021 - 12:27 AM.
"Nulla tenaci invia est via" - Latin for "For the tenacious, no road is impossible".
"In order to master the markets, you must first master yourself" ... JP Morgan
"Most people lose money because they cannot admit they are wrong"... Martin Armstronghttp://marketvisions.blogspot.com/