Microcap Mutual Fund

We check the stocks in our "microcap mutual fund" once a day, usually at the end of the trading day. We will increase or decrease our holdings in a stock depending on its performance in occasions. It is important to keep your portfolio dynamic. If you just buy a stock and let it sit you are putting yourself at risk. In our opinion we have seen too many cases of investors holding a losing stock much too long in the hope that it will eventually recover. At some point you need to face the fact that you were wrong on that particular investment and limit your losses. Furthermore, by having your money tied up in a losing stock even as you wait for its eventual recovery, you will be missing out on many other trading opportunities. You also need to know when you want to take profits on a stock on the flip side. Just as on the losing side, we have seen far too many investors hold on to a winning stock for way too long. By holding too long, we mean that they never take any profits while the stock is up and by the time they do decide to take a profit the stock has considerably receded from its highs. We will typically sell a portion of our holdings in a stock when the security achieves set percentage gain milestones. We often use our profits to add back to our position when the stock takes a dip. We like to think of this as buying a stock on sale. Everybody loves a good sale. We should know. We spent six hours waiting in lines during this year's day after Thanksgiving sales! When adding to a position, we try not to load up too heavily on one particular stock. There is no need to put all of your eggs in one basket as they say.