Robert Freedland

The Volatility Is Killing Me: Explaining My Sale of Expeditors International

SeaKC,

You make some excellent points. I indeed liked many of the numbers and data regarding EXPD. But this was not an "emotional" sale.

There are two parts of my investment strategy. I am sure that you too in some fashion utilize these two strategies. The first being stock selection. The second being the management of those holdings that are in my portfolio.

I have chosen to to limit my losses to 8%. This is far from emotional. It is entirely numeric and disciplined. However, in light of the volatility of this market, and the lack of follow-through in these stocks making nice moves higher, I have implemented two changes in my trading strategy: first of all, if I am down to my minimum of 5 positions, I now tolerate a 16% loss instead of an 8% loss. Second, when given a 'buy signal' that my own portfolio generates, instead of limiting myself to stocks making large % gains, I also utilize my broader list of 'investable' stocks that I review on my blog and give myself the option of selecting one of these---recently I purchased Sysco (SYY) on this basis.

I do not know if my system will work long-term. But I am working hard at honestly sharing with you and my readers my own strategy and trying to take some of the kinks out of the trading approach.

Thanks for your comments which are really right on the mark.

The Volatility Is Killing Me: Explaining My Sale of Expeditors International

Blowout,

Sorry you find my photo so disagreeable.

You are right about all of my trading. I am applying the brakes to my trading by expanding my loss tolerance from 8% to 16% when I am down to just 5 positions (from my maximum of 20), and am continuing to reduce my exposure to equities my reducing the size of any replacement position to 1/2 of the average. I am over 50% in cash now.

My "system" as amateur as it is, represents my attempt to have my own holdings direct me to sell or buy based on their own actions. Which is just horrible in this market.

I might be better served by getting a "magic 8 ball".

Thanks for writing.

Bob

Why Expeditors International Fits My Needs

Dear False Profit,

You might be more correct than you realize. The stock wilted under today's selling pressure, delivered me my 8% loss, and I stepped aside.

It is hard or perhaps impossible to be a momentum investor going long when the momentum is so bearish all around me.

Not so much a question of value as you point out, or perhaps indeed there isn't anything holding anything up anymore except value in which case you might be quite accurate in what you have written.

Thanks for writing and sharing your thoughts on my entry.

Bob

The Volatility Is Killing Me: Explaining My Sale of Expeditors International

weiwentg,

You make excellent points in your comment. I also appreciate some of the fine financial underpinnings to this company.

I have shot myself in the foot many-a-time as I write if you would like to check my blog. Overall, I have done o.k.

My goal is not to identify value and to hand on to it. Rather, I am trying to develop a more dynamic system that identifies quality investments, minimizes losses, captures gains, and shifts from equities into cash depending on the market environment.

Perhaps it is too big a bite to swallow. On the other hand, my actions are not based so much on the individual prospects of the holding, or my own evaluation of their worth. Rather, I am trying to develop a more dynamic approach based on the price movements of the stocks themselves.

Perhaps I should just buy shares in a good mutual fund and forget the whole thing?

Meanwhile, I shall struggle on, trying to minimize my losses, and batten the hatches in this awful stock market climate.

Thanks again for writing and I cannot argue with your comment.

Bob