- I hope to continue to be patient and disciplined in 2011. When sitting in front of a screen all day, it is natural to want to do something. Waiting for the best opportunities is difficult and that is why it is so rewarding.
- I caught every major low in 2010. However, I sold a good chunk of my exposure into the initial strong thrusts higher. In each case I thought we made a low but was worried about a pullback and thought I would be able to reload into one. While I believe that taking some profits after a nice move is a good idea, I want to try not to worry as much about the wiggles if I believe we are in an intermediate move higher.
- I believe its better to put one's eggs in a few baskets and watch those baskets like a hawk, than have eggs all over the place that one cannot possibly watch. Too much diversification leads to mediocrity as one can only keep up with so many companies. That said, I would like to try and diversify a little more this year. I have a natural desire to put more and more money into my best ideas, but there is a benefit to a little bit more diversification. That means doubling down on research and buying in smaller increments. This is especially challenging right now as fewer companies meet my value criteria.
- I hope to keep an open mind. So many things I strongly believed in a few years ago, I now believe wrong. There is no place for absolutes in investing.
My List For 2011
The past year was a breakthrough year for me. It was not nearly my best year percentage-wise, but a year when I was disciplined at almost all times. While that may seem like a small feat, I have been trading since 1996 and it took me 14 years to reach this point. Here is my list of trading goals for 2011: