Join Early Retirement Today
View Poll Results: Hormone investing account. What would you do?
Cash out and pocket the winnings 16 47.06%
Cash out and try a new game 4 11.76%
Let it ride 10 29.41%
Other - feel free to pontificate 4 11.76%
Voters: 34. You may not vote on this poll

Reply
 
Thread Tools Search this Thread Display Modes
Old 05-28-2011, 12:58 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 5,717
Send a message via Skype™ to kcowan
I have played the same game. I invested in AAPL at a split adjusted $8 and then sold it all at $75. Then bought back in at $51 with half and still hold the whole damn thing. It currently occupies $100k of our portfolio. I cannot bring myself to sell it.

Had another winner that we got for $0.88 and sold for $9.50 and put all the proceeds into our main portfolio (Jones Soda). Never looked back.

There have been others, many losers that reduce taxes owing. But generally the wild-assed bets have paid off because we are not afraid to bail out of losers and hang onto winners.

But the real question you are asking is: What is your risk tolerance? And only you can answer that one!

For us, it is higher than the average on this board. We are currently holding Lululemon for example, when all of our friends took profits $50 ago. If it drops 20%, well it was never real money then was it?
__________________

__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-28-2011, 03:05 PM   #22
Thinks s/he gets paid by the post
packrat44's Avatar
 
Join Date: Jun 2007
Location: near Canadian border and near Mexican border
Posts: 1,142
If your speculation account is less than 10% of your total liquid investment account, I would continue as you are presently doing. If the speculation account is greater than 10%, I would reallocate the excess to your "real" account.
__________________

__________________
Pigs get fat, hogs get slaughtered. That's my story and I am sticking to it.
packrat44 is offline   Reply With Quote
Old 05-28-2011, 03:19 PM   #23
Full time employment: Posting here.
mountaintosea's Avatar
 
Join Date: Aug 2006
Posts: 553
Question is what happens to AAPL if Steve Jobs is not able to return? I owned the stock before he returned. Sold at a profit unfortunately. He returned and the rest is history. Now he is gone again, many speculate the stock will be trashed again if his health problem gets the better of him?
__________________
mountaintosea is offline   Reply With Quote
Old 05-29-2011, 03:54 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 5,717
Send a message via Skype™ to kcowan
Have you looked at AAPL since Jan 1? I think it is already getting hammered by uncertainty about Jobs future!
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 05-29-2011, 05:10 PM   #25
Recycles dryer sheets
BradMM's Avatar
 
Join Date: May 2011
Posts: 79
Quote:
Originally Posted by haha View Post
i just wish my hormones could still get out of control.
ditto!
__________________
BradMM is offline   Reply With Quote
Old 05-29-2011, 05:18 PM   #26
Thinks s/he gets paid by the post
growing_older's Avatar
 
Join Date: Jun 2007
Posts: 2,608
Somewhere in your original plan for the portfolio, you likely had X% for this fun account. Since it has done so well and is now bigger than it's original X%, you could treat it like any other successful investment and rebalance to your target amount. Take the excess off the table and keep playing (if you are still so interested) with the fun X% you set for yourself.
__________________
growing_older is online now   Reply With Quote
Old 05-30-2011, 10:19 AM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 5,717
Send a message via Skype™ to kcowan
Quote:
Originally Posted by growing_older View Post
Take the excess off the table and keep playing (if you are still so interested) with the fun X% you set for yourself.
Right, gain peace of mind from assured mediocrity!

I guess peace of mind is worth it for many of us.

Since I have been retired, I am less inclined to rebalance because I have the time to monitor and focus. Like I should somehow earn my keep through portfolio outperformance!
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 05-30-2011, 10:24 AM   #28
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
If I allotted $1000 to blow in Vegas and I won $10,000 in the process, I'd take $9000 off the table and limit my continued gambling to the original $1000. Worst case, if I lost "everything" eventually I'm still $9000 ahead.

I would approach this pretty much the same way, though if my total portfolio rose by 50% in the meantime (for example) I might be willing to raise my "gambling stake" by 50% to $1500. But most of my speculative "winnings" would come off the table and out of the speculation pool.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 05-30-2011, 12:26 PM   #29
Thinks s/he gets paid by the post
growing_older's Avatar
 
Join Date: Jun 2007
Posts: 2,608
Quote:
Since I have been retired, I am less inclined to rebalance because I have the time to monitor and focus. Like I should somehow earn my keep through portfolio outperformance!
If that works for you, you make your own choices. For me, it sounds like another way to rationalize active management and market timing. I know I can do really well with that, until suddenly I don't. So, I don't do that anymore. Each of us picks their own path, but my choice would be sticking to the investment plan I planned on, not improvising because I hit a lucky streak. I do have contingency plans for both upside and downside surprises, so if your upside contingency plan is to increase risk and roll with it, then I wish you continued good luck.
__________________
growing_older is online now   Reply With Quote
Old 05-31-2011, 02:20 PM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 5,717
Send a message via Skype™ to kcowan
Quote:
Originally Posted by growing_older View Post
...so if your upside contingency plan is to increase risk and roll with it, then I wish you continued good luck.
What I consider to be the secret to my speculation is to quickly get rid of my losers. Take my lumps and get on with it. This seems to be the single characteristic that seems to distinguish me from others. I hang onto winners until it no longer makes sense to do so. Two quarters of mediocre performance is enough for me. Apple is approaching that, especially in C$.

Of course that assumes that at least some of my picks are winners. But it is not gambling. In fact, I don't gamble. Once in a while I get into a friendly game but I consider the stake to be the cost of entertainment. If I end up ahead, I thank my luck. Very different than speculating with a small part of the portfolio.
__________________

__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Are Wedding Expenses Getting Out Of Control? haha FIRE and Money 79 06-04-2010 03:40 PM
Best Friend is Getting Spending Under Control..... FinanceDude FIRE and Money 13 01-07-2009 08:32 AM
do you let money control you? lazygood4nothinbum FIRE and Money 34 07-09-2008 03:37 PM
Cruise control Mr._johngalt Other topics 30 11-20-2006 07:32 PM

 

 
All times are GMT -6. The time now is 09:13 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.