The market has done an excellent job of shaking off Intel (INTC:Nasdaq) and we are off to the races now. Breadth has improved and we have some decent action in technology stocks. Golds and bios are lagging today and retailers have managed to bounce.
I always receive a lot of comments about how difficult it must be to manage hundreds of positions. It isn't nearly as daunting as it sounds. I strongly believe most people who focus on the market all day tend to overmanage their portfolios. They react to every tick and jiggle, even if meaningless, and tend to overtrade. They lose sight of the bigger picture in many cases and end up selling when they should simply be patient.
I find that having a large number of positions keeps me from micromanaging my portfolio. For the majority of my positions, the intraday ups and downs are just noise and really not important to the bigger theme. I'm not a daytrader. While I do make intraday trades often when I see an opportunity, it is not my focus.
I list all my stocks on a real time watch list and sort them by net change or sometimes percentage change, and then I focus on the stocks at the top and bottom of the list. The great bulk in the middle don't need any attention. Periodically I will scroll through all the charts of my holdings, which I can do in a matter of 10 or 15 minutes. What I'm looking for are the big moves over the course of a day or weeks, and a 20-cent move intraday doesn't warrant attention in most cases.
I have a young assistant named Quint Tatro (aka "the Q-man") who works at an adjoining desk; he serves an extra pair of eyes, and between the two of us, we do all the trading. Once we are over $50 million in assets, we might need some additional help, but I'm not even sure of that.
P.S. Will you be there when Cramer makes his next move?
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Rev Shark Blog Long Side Looks Tasty 3/3/2006 10:25 AM EST After some profit-taking on Intel, the market looks ripe for some buying.
Rev Shark Blog Day-to-Day Dilemma 3/3/2006 9:18 AM EST What to do when a new day brings an entirely different tone to the market?
James "Rev Shark" De Porre is a self-taught trader who primarily trades for his own account from his home on Anna Maria Island, Fla. He is a member of the Michigan Bar Association and a former tax attorney and CPA. De Porre holds business and law degrees from the University of Michigan. He was formerly the host of America Online's The Shark Attack and presently operates SuperTraders.com. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Rev Shark appreciates your feedback; click here to send him an email.
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