Understanding investing and how the stock market moves is basically decoding a complicated game. Once you have some familiarity to how stocks fluctuate, and the principles behind daily price action, you then have to make the audacious decision of buying and selling stocks. It’s a dynamic game with many moving parts played by retail investors (myself), professional financial advisors and equity fund managers.
Every second on the market is different, as a stock at any particular time could be oversold and relatively cheap or the opposite and heading toward the top of a momentum peak. What seems to be the best approach (IMHO) is to have a diversity of stocks that you have researched and vetted, so you don’t need to burden yourself with that particular decision. You know what you own in your portfolio with reasonable confidence. Then for maintenance, try to keep equal weight amongst your holdings to take advantage of both big jumps and dips.
Don’t sell off entire positions to chase runners. Don’t panic sell to stop the bleeding (if the company is still viable). But periodically adjust your portfolio back to equal weight. By doing so you’ll capture wins while at the same time reinvesting in your laggards. This should accelerate compound growth loops and allow for long term gains on average.
Most importantly this method helps get you off the roller coaster by leveling your positions when facing market-wide corrections and surges.
Here are 14 that are optimally priced for sustained growth trajectories:
Jounce (JNCE) $320M
Puma Biotech (PBYI) $331M
Brightcove (BCOV) $553M
Perion (PERI) $667M
Sierra Wireless (SWIR) $706M
HEXO (HEXO) $786M
Vaxart (VXRT) $919M
Viant Tech (DSP) $1.4B
PubMatic (PUBM) $1.7B
Rubius (RUBY) $2.2B
LiveRamp (RAMP) $3.1B
Magnite (MGNI) $4.3B
Digital Turbine (APPS) $5.9B
Trade Desk (TTD) $37.2B
“Price is what you pay. Value is what you get.” -Warren Buffet