I updated my diversification table on my Current Portfolio page and below. I’m far too heavy in Tech since options expiration. What kept me balanced before expiration is no longer part of my account and now I have half of my plays in Tech and it’s worse than that considering the dollar amount for each.
This will improve as I enter new positions, but I will prohibit myself from trading into any more Tech until I’ve removed one or more of these I’m already in. This is such a good drill to do on a regular basis to make sure all your eggs are not in one basket. In fact, what this tells me is that I almost have to dump some of my NVDA shares I’ve been debating about. Before that, I might go ahead and take my losses on MOT. I’m ready to start with a clean slate anyway. I’m up on my covered calls, but I’m taking a bath on the stock. I’ll have to sleep on this though as I don’t think there’s much downside risk left in MOT, just like I thought there wasn’t when it hit 15 and 14 and 13 and 12…
Services
DWA – Movie Production – Theaters
Financial
NYX – Diversified Investments
Technology
MOT – Communication Equipment
NVDA – Semiconductor – Specialized
ADBE – Application Software
AAPL – Personal Computers (but we all know it’s more than that)
Industrial Goods
CAT – Farm & Construction Machinery
Consumer Goods
MO – Cigarettes
Watch out for the RIMM vs. Motorola patent infringement suits just announced.
I saw that today. I wonder how that’ll affect the stock.
Not sure if you got lucky, I don’t understand the law suit, or the market doesn’t understand it. Either way, not even a scratch on either stocks in a mixed day.
Wish all my days were this boring.
Diversification is very important if you are betting all your asset in one thing. Because sometime one single things may fail which will eventualy make you go for other thing. So its better to keep your options open