I agree but with a minor add... I stock up long positions that are long past short term gains liability... Then if I have big upsides on them (think over 75%) I may trickle some of that out and buy back during a low...
It's really 99% hold long with some opertunistic sales and buy backs... Trick I follow is to always have some of position be in hand longer tha 2 years so you can ladder . Look up CD laddering for an example
Quote:
Originally Posted by GregWeld
So here's CRAMERS view of the market:
"Being prepared means selling or trimming not just stocks you're indifferent to, but even the stocks you like, betting that you can buy them back at a lower level."
-Jim Cramer
Let's discuss this for the average investor. Cramer is talking to people with trader brain. He's talking to people that watch the markets move every minute of every day. THEY can TRY to time the market by capturing their gains (inducing a tax event).... sitting on the sidelines.... and waiting in the hopes that they catch the right move in their stocks. In the meantime - they miss a dividend payment.... in the meantime they'll NOT catch the bottom because they'll either be busy with LIFE -- or the market will move HUGE in one day - and they'll miss that - and then chase the market up.
My point??
I've been doing this for 30 years.... I'm trying to impart a tiny bit of what I've learned over the years. I keep huge amounts of cash on the sidelines. BUT I CAN AFFORD TO DO THAT. I'm already rich. You guys are trying to get rich or get your retirements rolling. I guarantee you're not going to get this right. And you'll create a taxable event etc.
Please don't react to every little nuance in the market.
Here's what I do during market corrections or "dips" or whatever you want to call it --- I don't sell --- I use these events to add to positions. But I have cash on the side so I don't have to sell.
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