How to Win like Top Fools in your RL Porfolio.
The overwhelming calculations done by the players here at fool to imitate the winnings of the top fools winning picks in real life are all for naught. There is not a single fool proof way to consistently pick the winnable picks like them in our real life portfolio as bbmave clearly points out to roofman6 in his blog. roofman6 who along with others have done insurmountable, by me, calculations in spreadsheets to equations (portefeullie) in ideas on how to come close to predicting the winnings. However, not one of them can come to 100% accuracy of the picks in gains for picks in real life for those huge profits.
By keeping a eye on these top fools: While you can never duplicate the hundreds of percentages in real life gains year in and year out. You can get to double digit gains which is better than most.
1st. In real life don't be "All In", in only one position, or a handful. Be diversified because you are human and will either suffer from panic on losses, or euphoria on gains. Too many pitfalls because unknowingly you might not be as diversified as you thought you are where one sector can bring your portfolio crashing down.
2. Use the top fools as your watchers to help you keep an eye in on a great investment opportunity.
3. Most of us can't suffer losses and are fearful when our pick is in the 100% gains that forces our human nature to lock in RL losses or gains but in caps we keep holding. Figure out why hold or why you should lock in, ask yourself would you do the same in caps picks for points?
3.5. We just don't have the funds to wait and hold to see which 10 picks are going to give us 100% gains on each. So we consistently buy and sell each month. Reallocate only if you need to according to your winning picks in your caps portfolio each month so you can follow your Caps winning picks in RL profits.
4. Listen to ideas from others, any one have any? Please tell us if you are doing this in real life portfolios with the RL gains or losses you have as well. Why does it work for you and might not for others?
I for one am following my own above advice. I have my ups and downs due to being human and not having the patience. Since I just started doing this recently I do not have a long enough history of percentages to give you, I will check back at the end of year and let you know how my 10k portfolio did. So far it's up 10% which tomorrow can be -10%.