Yes it can be tempting thats why i took a conservative approach.birdog wrote: ↑Thu Mar 26, 2020 3:54 amThat’s great if you are able to do that and not be tempted to let it grow to a larger part of your portfolio. My IPS says, that due to past performance, I’m no longer allowed to buy an individual stock. I think my IPS is so mean but it says it’s just being strict because it loves me.
The amount i can trade with is a fixed amount written on my IPS. It allows me to take action because i cannot stand still all the time but without deviating my main course and asset allocation of my major investment (60/40 international stocks and bonds).
To make it more controlled and interesting, each 6 months i lock gains that i made from the trades and add them to my quarterly contribution of stocks/bonds hence bringing back the amount of trading to its initial number set in my IPS.
If i take big hits and lose the money, its over i am no more allowed to stock picking. I will be out of this game and will continue only with quarterly investments based on my AA.
So far it is fine for me. I am sticking to it, it is fun and i made 30% profit on that amount last year (can be luck as well).
This year i am down but i am fine with it.