executing JR ideas

this comment from Amos is great. takes a skill / savvy investor to execute right:

"when I trade, I always follow the procedure as the following:

1. the certainty of idea.
what percentage does the idea will have capital return. this is core of sizing the position, that why I exited the position of Spirit stock, Capri, or CLMT much earlier than Jeremy, because I felt uncomfortable about the return, feel a lot more uncertainty.

2.take time to add the position, the price is the key of return

I don’t rush to build a position when new idea come, I usually judge the catalst and margin of safety to determine when to add. even though, I did missed the EML position in lower 0.5, but I manage to keep it in 0.7 to 0.9, and profit them in 1.2, then add back in lower 0.9, because I sensed that the value don’t change, I could take time to add and sell in higher.

take your time , the catalyst doesn’t achieve over one night, the higher the price, the less return, the risk/reward ratio become ugly.

3. don’t concentrated fund to single or two asset. keep a balanced portfolio will survive and flourish.

if Subs feel uncomfortable about the steps listed above, I think Jeremy blog may not suit you, may be index fund have better return in the long run.

it would be wise to reconsider, if you really capable of investing stock, or just buy a index fund and have a happier life. I strongly recommend sub to quit if you don’t feel comfortable about investing stocks, it is naturally not fit for everyone"