I break my portfolio into three main components:
1️⃣ Long-Term Positions (Core Holdings) – 50-70%
These are my high-conviction, multi-year investments—stocks, ETFs, long-term crypto, or even real estate. I only trim when fundamentals shift or valuations get excessive. My long-term vision here is clear.
2️⃣ Trading Capital (Active Rotations) – 20-40%
These are medium-term plays, typically assets with solid wave structures already within a trend. This bucket includes trend-following trades, swing trades, and cyclical rotations. The key is staying liquid and flexible to take advantage of opportunities.
3️⃣ Cash Buffer (Dry Powder) – 5-20%
This is my optionality—capital reserved for market corrections. The percentage varies depending on conditions but ultimately feeds back into my long-term and rotational plays when opportunities arise.
• Trim positions when they get overextended—if something 2-3x’s, I de-risk.
• Take the most risk when the risk isn't even there (accumulation), not at a later stage (macro wave 2's and 4's). Conviction and luck is actually a needed component sometimes when it comes to breakout anticipation.
• Increase cash when markets are euphoric, deploy when there’s fear. Simple contrarian approach.
——-
Everyone has their own approach—some reinvest everything, others withdraw a set percentage.
For me, I take 100% profits based on category and cycle, ensuring I fully exit positions once I’ve hit my targets (i.e. built stocks from 2013-2016, sold in 2021-2024).
——-
https://x.com/XForceGlobal/status/1892850526792110128
