You've probably read Warren Buffett's famous two rules of investing.
- Don't lose money
- Never forget rule #1
Ha! Ha ha!
Now, I imagine you consider this advice in the same category that I do – – – a useless bromide, equivalent to telling a newly married couple not to get divorced or a startup business only to sell successful products.
But I am taking the Oracle of the Really Unfortunate Town to Inhabit to heart today, since I've had a great run, and I want to protect my hard-won profits. There is no worse feeling in the world than seeing a profit turn into a loss, so I have been:
- Closing out positions that I think have had their run for now
- Reducing the size of positions that might have more life in them but have become overly large due to built-in profits
- Tightening stops for the rest
The Fed announces today, and it is widely expected they will simply leave interest rates alone at 2%. As always, the "EKG" effect on intraday charts will be in full force. Hang on tight, and keep your eye on the big picture instead of the latest tick.
