I need to be careful flitting about in the market, stay focused on certain areas and ideas, do what works. What worked at the end of the year was trend trading some breakouts or oversold bounces. But my post trade analysis (PTA hereafter) still tells me I am missing some big moves. Some of my best ideas have been what I have talked to family about if and when they ask. Out of town visitors, very passive participants in the market, have asked me what to buy. Generally I have an idea of what that should be, nothing to risky, generally with some parameters based upon breaking out of price ranges and also with some sell stops in mind though I rarely get asked about them. Some of these ideas have just been stellar performers. Also in my PTA, I see many stocks I used to own that have just way outperformed the market over time.
I want that kind of big performance. I want to severely outperform the market. I want some homeruns and 10 baggers. It has been a long time since I got over 20-30% on anything I bought. The only way to get the big money is to buy and hold. My obsessive trading has not helped.
Think about trading rules, what do they tell you? They tell you how and when to buy and sell. Buying and selling gets one in and out of trades. How can I adapt this for the big money? Buy right, stick with big trends, and hold onto the winners. I see how this can be done with Canslim type stocks, combining the best of what I have learned.
I have one such idea today.