Our Investment Flow

There are a number of terms you will see repeatedly used on the site that make it easier for us to describe our feelings and the actions we are taking with a position.  The descriptions below should help clear up any confusion.

Stalk

Every investment begins with the hunt.  Our selection process narrows down the thousands of available investments to a select few we stalk.

Pounce

Once in our sights, technical and fundamental analysis determine whether we pounce on our prey or forget about it and look for brighter opportunities. 

Scold

Our total returns are driven by our annual returns, which in turn are driven by our quarterly returns, then monthly, weekly, and finally daily.  Each day, our returns are determined by the quality of the positions in our porfolio and their alignment with the current trends in favor. 

This implies on any single day, our individual positions are representatives of our investment methodology and future performance.  As such, if a position is representing us poorly and tarnishing our reputation, it is scolded and held under tight scrutiny until performance improves or the decision to cut the position is made.

Even a single bad day can warrant scolding, despite excellent behavior in the past.  (Though we aren't Captain Blighs here and we do cut our better performing positions some slack!)

Insure

When a position fails to perform as expected, it's time for insurance.  In our case, insurance is the act of selling the position and protecting us from further losses with the hope that the position will soon recover from its recent weakness.  Once the selling abates we will quickly re-pounce as long as the fundamentals still support the uptrend. 

Though it's rare, occasionally we may insure a position into strength if it is approaching a major resistance area and we have significant profits to lock in.  In these instances we're hoping to re-pounce immediately once resistance has been cleared.

Forget

Once a position no longer pleases us technically and/or fundamentally, we throw it back into the dust bin and forget about it until a new catalyst arises.  There are plenty of other opportunities available to us and there's no point holding onto a poor one simply because we loved it in the past.