Given this, I've decided to "officially" amend my strategy to include a more speculative component. I actual started this in May by buying into TSYS (Telecommunications Systems), then closing out my position when I realized that I was not adhering to my stated strategy. I've seen several interesting opportunities pass me by (TSYS, RIM, ETFC) in the interim and have decided to take advantage of these in a modest way.
As with my main strategy, I've tried to establish a few rules:
- Speculative stock should be limited to less than $10,000 in total.
- Stop Loss limits may be utilized as appropriate as I do not wish to hold these for the long term in the event of a downturn.
- No real selection criteria at this point, but obviously there should be some indicator that the stock represents a good value and has good prospects for the immediate future.
I'm interested to see if this leads to other bad habits!
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