7 Minute Read

Tales of a Technician: Managing Single Stock Portfolios

November 7, 2022

By | No Comments

On the challenges of managing a portfolio full of single stock positions.

Notes

Two ways to build a long-term stock portfolio.

1) Easy, simple, higher probability route

                A) Potential ROI will be lower.

                B) Build a diversified stock portfolio using broad-based ETFs (SPY, IWM, MDY, USRT, EFA, EEM)

                C) A diversified stock portfolio is INCAPABLE of delivering a permanent loss historically. A permanent loss is a human accomplishment created by fearful investors turning temporary drawdowns into permanent losses by selling.

                D) Sell covered calls and/or buy protective puts to minimize the damage in the interim.

2) Harder, more complex, lower probability route

                A) Potential ROI will be higher.

                B) Build a stock portfolio of INDIVIDUAL stock positions (basket of 5 or 10 positions)

                                i.) implicit bet that your basket of 5/10 will do BETTER than the rest of the market.

                C) A basket of 5 or 10 stocks CAN deliver permanent losses because historically the majority of individual companies go down and never go back up!

                D) In the midst of a bear market it is HARD to decide whether to STAY or GO when you have a basket of random stocks.

Read more Tales of a Technician [FREE Content]


Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.


Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Chart Modal

Tackle Trading

Holiday Sale

Attention: Beginners and Advanced Traders!

The Annual Holiday Sale is here!

Celebrate the Holiday Season by taking advantage of this generous offer and save up to –60% on these awesome Trading Systems and Coaching Program!

Offer ends in

Days
Hours
Minutes
Seconds