Donkey Hotay

[burrocrat]

I'm really looking to discover some investing wisdom here, but i understand humor and words better than charts and statistics, so i don't think this will float in one of the market threads.

Looking at the autotracker, i notice a lot of folks have done real well playing one fund, whether it's buy and hold or move in and out. My strategy has been to spread risk among a few funds and adjust percentages when i percieve a path.

No matter how i study, i just can't see a move clearly enough to make the big bet.

So what do you see, and how do you do it?

Why put all your eggs in one basket?

 

[Birchtree]

If there was ever a time to pile on the risk it's now at the beginning of a new cyclical bull market. This could be a generational move up in the markets.

 

[KevinD]

So the question is about allocation, right? I have been wondering the same thing but couldn't figure out how to ask. Looking forward to the replies.

 

[burrocrat]

So the question is about allocation, right?

Right. What strategies do people follow and more importantly why?

I found some good info in this post: http://www.tsptalk.com/mb/showpost.php?p=76255&postcount=8

I try to be a 3, but I supect I tilt more towards a 6. I go with a 3S strategy: stir-stew-strike. I fill the kettle with lots of ideas, let 'em bounce around 'till things start to gel, then hit it when i think it's hot.

Different investing styles (Or how do you carry your eggs):

1. Buy and hold: Last time you tried multiple baskets you couldn't carry them all and wound up dropping some.

2. Multi-fund diversified: You were going to make scrambled eggs anyway.

3. Multi-fund swing trade: The small baskets were on sale.

4. Single-fund swing trade: You need all your eggs, so dropping a basket with only some of your eggs is as bad as dropping a basket with all your eggs.

5. Day swing trading: Your baskets are really big and you can only carry one at a time.

6. Other: Because the little chicken that lives in my head told me to (please explain).

 

[KevinD]

Maybe a Mod could move this to one of the "strategies" forums.