Quote:
Originally Posted by Nightfyre
We were just kicking it around, talking pros and cons.
The big pro to me is developing a portfolio of company's you actually believe in.
Minimizing losses and removing the emotional factor is also important.
We talked about using the fixed percentage OR having a specific exit strateg.
IE If I buy NVDA because I know they are going to kill it in the second quarter because their new graphics card is redefining the market, I sell after the earnings announcement is digested. If I buy it because of their potential growth into the automated driving market, I may establish a long-term hold strategy - or just buy long-term call options. In the case of NVDA I did both. However, I got antsy on my long-term call position after it had basically gained 250% on the value of it. That option would now be worth over 6 times my initial investment. But I am happy just to have raked some gains, even if I gave some up because I am a nervous nelly.
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Interesting strategy. Thanks for sharing that.
I am rather new to actually purchasing individual stocks but have researched for quite a while. After pumping my 401k and Roth IRA, it's taken a while to want to use extra money for more investing. Individual stocks still make me rather nervous. lol