Concentrate  Your  Portfolio  to  Few  Stocks

Groucho Marx on  'Peace of Mind'

Each morning when I open my eyes I say to myself: I, not events, have the power to make me happy or unhappy today. I can choose which it will be. Yesterday is dead, tomorrow hasn't arrived yet. I have just one day, today, and I'm going to be happy in it.

Groucho Marx, comedian

I was gone away for 2 weeks in early February to Mexico to observe the annual migration of the Monarch butterflies.  As soon as I got back from my trip, the market began to tumble after attaining an all time high on Feb 19th.  Within a week, I had migrated to CASH position since the market had gone into correction at this point.  News of the Corona virus was taking a hold and by the end of the month, we saw 24/7 coverage in print, television and all across social media platforms.  I was alerting my readers to distance from any news coverage or engage on social media about the virus.  In my post on March 9th, I specifically said:

"We are going to have an opportunity of a lifetime to make substantial gains when we finally get a successful  'Follow Thru'  day.

Market sentiment had turned very negative and everyone was very paranoid and stunned with the average drop of 1% per day for the next 35 days with the  $SPY.  Just as quickly the market began to rally on March 17th while everyone was still in shock.  History suggests that the market tends to rally when most investors sentiments are at the most negative.  Within 2 weeks,  $SPY  had a  'Follow Thru'  day  on April 2nd followed by another  'Follow Thru'  day with the   $NASDAQ  on April 6th.  I had published a list of 19 stocks that were on my watch list on the weekend of March 29th.  If you were reading my blog post in April and May, you probably noticed there were 3 stocks that kept reappearing every week.  I gave a detailed account of  $RCUS  in my post of April 19th.  It was intended to demonstrate how institutions help propel the stock higher when they start accumulating a certain stock.  

I am posting 2 links of an interview of Mr. Warren Buffet below.  I have watched it several times over the years and I draw a lot of inspiration from it.  I am sharing them with you to help inspire you as well and help you become profitable in your trading and investment journey.  Quite often my readers ask me as to how many stocks they should own.  If one has a portfolio size of $100,000 to $200,000, 4 to 5 stocks is probably the maximum one should have.  If one has a substantial size portfolio of $500,000 to $1 million, 6 to 8 stocks is probably the most that one can actively manage.  One can start out with more stocks during a  'Follow Thru'  day.  It should be trimmed down to get rid of the laggards and use that money to pile into the stocks that are taking off the starting gate.  You want to feed more of your $$$ to the ones that are performing for you soon after a  'Follow Thru'  day.

https://youtu.be/bHPzQIW_pww

https://youtu.be/iEgu6p_frmE

My  3  Stocks

1. $DXCM   ... April 3rd position at $263.32 (currently +43.7%)
2. $DXCM   ... April 20th added position at $322.87 (currently +17.2%) Waiting for a base to form to add to final position before June 30th.
3. $MRNA   ... April 3rd position at $32.81 (currently +87.4%)
4. $MRNA   ... May 8th added position at $53.06 (currently +15.7%)
5. $MRNA   ... May 28th added position at $53.50 (currently +15%) Waiting for a base to form to add to final position next 2 weeks.
6. $RCUS   ... April 3rd position at $15.16 (currently +106.9%)
7. $RCUS   ... April 7th added position at $15.85 (currently +97.8%)
8. $RCUS   ... May 15th added position at $31.35 (currently +0.06%) Waiting for the stock to move up to the 10 day sma (simple moving average) to add to the position.

Average performance for 3 stocks since the  'Follow Thru'  day ... +46%  in 8 weeks.

Currently we have only 1 distribution day with the  $NASDAQ.  $QQQ  is currently trending along the upper half of the Bollinger Bands.  It has been trending along the 10 day sma and has not breached the 20 day sma since the  'Follow Thru'  day.  That is a very healthy sign in the market.

Happy Trading!

Amin