The same answer as isatader with regard to investor positions the only difference is I have three positions in commodities which I regard as a good diversification away from equity markets. Having said that, if we are to experience a similar crash to that of 2008 or worse then that will not apply. I fear that we are in the not too distant future going to be experiencing either a crack up boom or a severe crash worse than 2008. Both will be followed by a deflationary depression lasting many years, a la Japan. If this were the case then we would see investor positions dropping through their stage 1 bases. I cannot let that affect my investing in case I am wrong but I have compromised by not having taken full long investor positions as per the method and I can always add to them using a compromised trader method if I'm wrong.
With regard to shorting as an investor, I am very reluctant to sell short any stock unless we are in a confirmed bear market or there are other intermarket relationships at play e.g. interest rate markets rising affecting highly leveraged REITs and home builders to perhaps a lesser extent . I think doing otherwise lowers ones edge too much.
It was difficult watching my account drop by 4% on my trader plays yesterday observing the trader methods rules for the placing of stop loses. What I have to consider, is that I was up about 13% over a six week period and only one of my stops on seven positions has been hit. My account is down a little further today but I intend to stick with the stops as per the methods rules for these positions. Hopefully I will still be in the game until the huge rally comes after the inevitable debt ceiling raise is approved.
Owing to the crazy things that are going on with the fed and politics - as above and what we touched upon in the elite members area - going forward I envisage taking a bigger proportion off or perhaps my whole position off on stocks that advance quickly to lock in some quick profits. I particularly like the pocket pivot purchase method for entry founded by Morales & Kacher. It came about for finding low risk entry points in the type of back filling markets we have been seeing for a while now. So to summarise as far as trader plays are concerned it will be quick hit and run type trades on the long side I will be looking for until we emerge from "no mans land".
