As most of you know, I’ve been personally handling my investments for the last few months and am doing pretty well.
Today I found a reference to William O’Neil who expressed my exact philosophy on the stock market.
There are only 5 rules.
Buy expensive stocks and stay away from low priced issues.
Do not average down in price–only pyramid up to your position.
Be quick to take losses with your max being 8%, average wins being 20%.
Let your winners run as long as they are behaving properly.
Diversification is for those that do not know what they are doing.
The last rule can be can be expanded to say:
It is better to have a few of the best stocks and watch them closely.
It is interesting to me how my learning and experience in the market over these last 5 months led me to these same beliefs. So far, since I took control of my own investments, I am up 22%. I guess these rules are working.