Willingness to buy.
Willingness to sell.
Which is more?
Willingness leads to pressure…
…if buyer or seller is serious about it.
Willingness stops at willingness and does not lead to pressure when buyer or seller is in two minds.
… and selling pressure.
When overall buying pressure outdoes overall selling pressure…
…prices move up.
When overall selling pressure outdoes overall buying pressure…
…prices move down.
There comes a time…
…when we don’t want anymore.
Why has this happened?
It’s a spin-off from our small entry quantum approach.
We’ve been buying at sale prices, with small entry quanta, each day, a quantum a day.
A groove has been set.
After umpteen failed attempts, prices break through.
An interesting thing happens to us.
Slightly higher prices start to pinch us.
As prices go even higher…
…our mood is off, and…
…we don’t want anymore.
From a strategy perspective, this is the best thing that could have happened to us.
We will not be buying as margin of safety vanishes and remains vanished.
Our want will be triggered once more, when margin of safety returns.
This has not taken place for free.
It is an indirect result of our painful sticking to a small entry quantum approach.
Who’s not looking?
We. Stock people.
What are we not looking at?
Wrong question. We’re always looking at stocks.
Ok. What are we not looking for?
Our magic number has been hit.
What’s this magic number?
That’s the number of stocks we wish to handle.
Is it the same for everyone?
No, it’s different for everyone.
How does one arrive at this number?
Through hit and trial. Whatever that works. Where you feel good, that’s your number.
So, will your portfolio now stagnate?
No. Most definitely not. If a stock is not interesting anymore, it can always be replaced.
How does one go about doing that?
Wait for a market high. Then discard the stock you are not interested in anymore.
And how does one find a new stock in a scenario where one is not looking?
You let the stock find you.
You’re not looking, but something eventually hits you in the eye.
Then you dig deeper. If all criteria are met…