Good disclaimer. I have dealt with customers like yourself in my line of work. A couple of things.

 

First, what you describe fits the bill to a T of what I see from this type of investment strategy. Investor X makes a lot of money aggresively pushing a certain sector or instrument of the market in the short run. What most don't hear about is what happens next. Over the span of a year or two Investor X's portfolio crumbles due to a sharp downturn in the particular sector/company, etc.

 

Second, my advice is that the type of investment strategy you describe is fine for someone in their 20's and mid 30's. Taking chances can be a very good and profitable strategy. But as you reach 35 you need to be working towards a more stable strategy that can still give you long term results. With any luck, you've made a bit of cash in your 20s and 30s and you don't NEED to take those unnecessary chances. If your putting in the amount of work I think you are then there is absolutely no reason why you can't find a more stable option with a great ROR.

 

Again, just my two cents.

 

Mid-30s? Heck, life expectancy tables tell me I've got another 40+ years to live at that point. Why get conservative then?

I forgot that I do invest in a mutual fund but its an index fund which IMO is the only mutual fund worth the investment. I think I read a stat that something like 75% of mutual funds underperform the market by 2 percentage points. Take that over 15 to 30 years and you're talking about serious jack.

I think I read a stat that something like 75% of mutual funds underperform the market by 2 percentage points.

All five of mine have well out-performed the market over the past five years. A mutual fund portfolio is a great idea for almost any inverstor. It just needs to be diversified in type, goals, and geography.

My 401K is in mutual funds. It has done quite well.

I have invested heavily in small cap and mid caps over past 3 yrs and have heard that Large Caps are where its at right now. Any thoughts on that? Buy now while they are low?

I bought it at $475 and sold at $550, shouldve held on a little longer. :mad:

 

The biggest challenge to investors: how long do you stay in? I didn't stay in long enough on Google. Fortunately, I did on Garmin and while I havent' checked it lately, it was at the time a 200% return. You win some. You lose some.