Currently I am 66.5% invested. This ignores the 401(k), it perpetually sits in 4 stock fund baskets.. acting as a control to my active management.
Some positions I have tight stops, others have wide stops. A few positions I actually plan to average down if it corrects; in 2013 my big mistakes were selling winners too soon and/or getting shaken out… I want to get back to putting more emphasis on good companies with strong metrics and less, however important it may be, on technical analysis timing. I want to use technical to try to time my entries and cut my losses on more ‘higher risk’ names but not getting shaken out by them so much. For example, I want to do more of buying on a technical breakout, but instead of selling if it fails, either hold or buy more so long as it says within the last ‘Darvis box’ consolidation pattern. KORS is a good example as of this writing. I plan to hold my current position, even if it corrects to $71, which is a 10% drop. I’ll likely buy more there so long as it looks to form a bottom. KORS is a great company, so long as the story holds, I don’t want to get shaken out on the stock on a few month correction. A stock like FIVE… I do not wish to do this; I have a more trend following stop in place.
Market hasn’t corrected for a long time, everyone knows this. I anticipate it will in Feb during/after earnings season. At a 5% dip I plan to deploy half my remaining cash. At 10% I plan to deploy the rest. If it happens to dip 15% or more I plan on using fixed income funds to add more. If the correction continues not to happen, I will continue to have too much cash likely, and not best the averages again this year :)