Portfolio Management - The Importance Of Realized Profit
When will the Bear strike again? I don't know.
Will the Bull pause and continue running? I don't know.
When will the Bear or Bull Strike? - Revisit
I can only know my own personal over-sold and over-bought indicator in my own portfolio.
When the Bull is charging ahead and I have over-bought, I will begin to take profit slowly. If the Bull pauses and continues to charge and I have over-sold. I will then do nothing but just relax and let the core holding in the portfolio charges together with the bull. It will be sad if the bull continues to charge with you holding bulk of your portfolio in cash.
When the Bear begins to strike back and I have over-sold, I will buy slowly and stop if I have over-bought. Similarly, it will be sad if the Bear strikes in a big way and you have no money to buy.
Watch you personal indicators closely.
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