TAKING PROFITS HERE CAN’T HURT US. AND WHY BEING AN ALIEN IS PROFITABLE IN FINANCE.
So we're taking more of our technology bankruptcy (now well out of bankruptcy) play off the board here. It's moved down to a small - mid sized position. Not because I am bearish on the company at all...but rather it has become too large for us as our niche is companies trading under $50 million in market cap. This one is now nearing a $400 million market cap (was a $50 million company when we first took a position) and I believe it will be susceptible to market givebacks and instability going forward.
We are also making room for additions to some current names and the purchase of a new name. Still working on the research...and it will be released to current members in the near future.
Our portfolio, thus far in 2011, has been two stories: sideways or down. Not any violent downside in the least bit. Just some dull, mindless selling, as our holdings work themselves into sideways ranges, awaiting the next move forward.
I can't say that this was unexpected, as the run of 6 straight up months that we had last year was due to hit some kind of resistance...namely in the form of profit taking in the new year, as taxes are always more fun when they are deferred for an extra 12 months.
It surprises me the number of traders who are uncomfortable with simply sitting tight when the right opportunities do not present themselves. It's a function of inexperience more than anything else. Our nature as human beings is that if we're doing nothing we are lazy, worthless, wasting time etc.
What people seem to forget is that the markets prey on human nature. What works as a human in everyday life and as you have been programmed to function in "normal" jobs doesn't work here. At times it pays to be lazy, it pays to do nothing, it pays to be fearful when everyone else is greedy and it pays to be greedy when everyone else is fearful.
Be an alien...it's the only path to long-term success in the financial markets that I know of.
