Buying Dips Paid Off Today

Buying on weakness and selling into strength, sounds good, right? But, it’s a little like standing in front of a train at a slit, hoping it goes right and not left.

While yesterday I did buy the dip on all the stocks that I had on my Tradespoon Bull conviction screen, I only purchased ~30 percent. I am not one to brag or kick mysef because I did not go all in. On the contrary, I stuck to a disciplined approach of risk entry and capital deployment. This structured approach allowed me to stay in the game… I slept well last night.

One note, if this market continues to rise I will be adding volatility exposure to my portfolio through one of the many VIX products on the market. I will start to add this exposure if VIX starts to drop to $14 or lower. This would also be the point that I would start to re-balance my longs.

See you next time at the Corner!