I have a business school education in Finance and immediately after the university worked for a NYSE firm in Beverly Hills, California . Experience has made me much more of a technically based "buy the dips" and "sell the rips" type of investor/trader rather than relying on fundamental analysis. I would describe my investing style as based on volatility theory rather than traditional portfolio theory. It is a quite mechanical style so therefore does not require a large time investment. I get emails from individuals when I post at SA on just what I do to make my returns. In essence, I use a number of oversold/overbought indicators to sell greed and buy fear. Investments generally return to their intrinsic value and CEFs are a great way to take advantage of oversold and overbought conditions in different market sectors because of the investor profile that is unique to CEFs. Of course the other benefit is in a sideways market CEFs generally provide a comparatively high steady return, often for months. I call my work Black Swan CEFing. As some of you probably know, there are an average of 3 dips of 10% or more every 2 years in the S&P. Buying these dips has proven to be a significant contributor to my lifestyle. My primary influence comes from following the S & P. When it is oversold or overbought I am on high alert. I may trade the SPXL long or short to make profits on these fear and greed conditions. I am occasionally using margin when buying a dip, and then I am first buying the CEFs and then SPXL. I use protective stops at all times, even on the CEF portfolios. As my target pricing becomes overbought I am first selling off the SPXL to totally eliminate margin exposure. I do not keep ultra tight stops with the CEFs as I am getting a nice return while waiting for them to also reach a target oversold pricing. I may tighten stops, based on market overvaluation. A sideways market doesn't bother me when I've bought a dip. It is one of the reasons I love CEFs and it is very empowering to be in a profitable position and not worried if you are stopped out of a long holding because you are booking a nice profit. My priorities are protecting capital with stop loss orders, then just trying to always be profitable. My 3rd priority is considering tax consequences and making tax advantaged money. As far as which particular CEFs I buy "on the dips", this varies. I generally find them by using CEF Connect where I'm looking for deeply discounted CEFs on a NAV basis with good volume. These can be in 'out of favor' categories. I always have a watch list ready for a 'buy the dips' opportunity in my taxable income portfolio and for my IRA portfolio. In general I don't like more than 4 to 6 positions in a portfolio. In very overbought markets I use a short of SPXL in the taxable portfolio and HDGE in the IRA as hedges. I have no problem holding cash in any of my portfolios. You really have a whole different perspective when you are generally always holding profitable positions, which is a true peace of mind benefit to this methodology. Although I always use stop loss orders for holdings when the S & P is oversold, I really don't worry about just selling and booking a profit when the market is showing a really oversold indication, rather than trying to squeeze everything out of a position (greed). I scale in and out of almost all positions trying to start with only 1/4th of an eventual complete position. This 'awakening' about trading the markets has allowed me to have other interests which include high end fitness, attending classic rock music concerts around the globe, and luxury level travel to over 75 countries. After all, someone has to support the classic rock and roll legends in the luxurious lifestyles they've become accustomed to! ... :-) ... I also enjoy some Jim Beam Signature Craft Bourbon Whiskey 12 YO on occasion. Good Luck To All! OH ... :-) ... how does this methodology work out? (the work I do is a bit more complicated than the above with different overbought/oversold indicators for leveraged CEFs, option CEFS, commodity CEFs, etc.) ... my return on capital was 34% in 2014, 31% in 2015, and looks to be even better in 2016 with the increased volatility. Everyone's tax situation is different so govern yourself accordingly.