Couple members have asked why are there so many names on the Focus List is Market Conditions are “mixed” right now. The current GMU has a range of 35%- 40% exposure
As detailed in last Focus List Video, these are trade ideas and not a “copycat” portfolio. Consider them a ” basket of ideas” to choose from if they meet your Exposure levels and Trade Setups.
If you already have 35- 40% exposure level and you are comfortable with that, then maybe take none of the trades. (Just because someone puts a buffet platter in front of you doesn’t not mean you need to gorge on it if not hungry). If you are a little light, you have some ideas to choose from. Some of you are more aggressive traders and will be more than 40% exposure, other less.
Find what is right for you and study your Open Portfolio Exposure if a Drawdown were to happen ….We spent quite a bit of time on different method to control drawdown in last nights Huddle.
Most starting FL Positions are 5% position and even with a bad string of 5-8 losses in row, you should not get too hurt. If you are feeling the pain of taking too many trades with larger initial 10-15% size positions, you are probably feeling chopped up. Size down your initial position size a bit if in a choppy market OR you can simply stay to the sideline and watch, observe and only place a trade when the conditions become clearer.
When the market really shows the signs that it is breaking down, the GMU has suggested in the past Exposure Levels as low as 0 – 10% and the Focus List for some weeks in 2025 had no Long names on the list ( we did Short Stocks successfully during the tariff meltdown) . Note in 2025, from Mar 1 to April 20 the GMU Exposure Levels were at 0-5% ( almost two months).
It can be frustrating “wanting” a market to move higher but it chops around…….Sideways Market Action is the worst for our style of growth stock investing.
Be patient, disciplined and observe market condition and adjust your holdings, stops and position size while wait waiting for the fog to clear
J