Occasionally, I re-balance my portfolio. I give a few stocks the boot that have fallen out of favor with me. Per example I dumped MGM in March of 2009 and replaced it with LVS as I still wanted a stock in the gaming sector. I replaced S with Q months back as I still wanted a stock in the telecoms. Both of these swaps worked out well even though S is now showing some signs of strength. The bottom line is while I would have been waiting on MGM and S to make a recovery I was already taking down some big profits on LVS and Q. When stocks stop performing it may be time to pick up a replacement stock. Your replacement does not have to be in the same sector but I prefer to stay diversified and to be in sectors that will excel in a recovery. Last year my mutuals did great but not as good as my trading account. I have been in the process of changing that horse since the beginning of the year. So far I have transferred over about 40% of cash to my trading account and I have noticed a big difference to the positive side as I have stilled out performed my mutual funds. I do not recommend this move for the novice trader because it can become toxic to your overall value if your trades do not perform well. Today is celebration week for me as LVS broke though $25 and is now up a 1000% since my original buy. That swap is with out a doubt the highlight of my portfolio. I have been asked to update my holdings and from the list below I am getting heavy in financials again so one may get the boot soon.
Current Big Board Holdings
LVS F Q CLWR AMD C SYA BAC JNS
Penny Plays
EVSP(E)
MY Calls
C Q MPEL
*When your horse needs a breather, you need to find another ride but keep an eye on that horse as he might want to run again some day...TTT. . .
Current Big Board Holdings
LVS F Q CLWR AMD C SYA BAC JNS
Penny Plays
EVSP(E)
MY Calls
C Q MPEL
*When your horse needs a breather, you need to find another ride but keep an eye on that horse as he might want to run again some day...TTT. . .
