Reminds me a little of the market runup before the crash in 2001. I had just "discovered" stocks and was following some stock-picking method outlined on the Motley Fool website which involved technical analysis and re-balancing every month. I watched with joy as my 29K increased to around 105K in a short time (probably around 6 months to a year, though can't remember exactly how long). Then I watched as the value of my account dipped sharply during the crash. Finally got out when the account was at 30K.
Most of the stocks that this technical analysis method had me picking were tech companies. Little did I know that I probably could have put my money into any one of the big tech stocks and held onto it for the duration, ridden the market up and done equally well.
That little foray into individual equities taught me two things:
a) I'm not a technical analysis kind of guy. I don't like making frequent trades, and
b) Markets that are booming don't continue to boom forever. Though it is of course, common sense, I didn't know it at the time.
I do have a small amount of my portfolio in 3 stocks now however - GOOG, BIDU and RAX. It's only 2.5% of the portfolio, and I can afford to lose it all without it making much difference to my ER plans. The potential upside of these stocks, combined with the chances they will do well over the next 5-10 years, is much greater than the potential downside.