Play Stocks exactly like Fantasy Football
Experts with fantastic CAPS ratings on Motley Fool can correct this "ignored player" if they want to but the following is perhaps the best advice one can offer a confused investor with a beaten down portfolio....
Play the Stock Market like you would play Fantasy Football.
Think I am nutz? Here's a list of things that one does in Fantasy Football than I think everyone should live by especially during this bear market:
1) In fantasy football when your starting running back, wide receiver, quarterback, etc. is injured and can not play... You will be screwed if you failed to HANDCUFF the position player with a decent quality backup player on your bench.
Regardless of how you feel about your portfolio in terms of believing each stock is best of breed in its sector, you must HANDCUFF all of your stocks to your watch list.
If you have an Industrial (Wind) company : Pick out a good quality Industrial Wind company to HandCuff it in case your Investment suffers a massive Injury.
If you have a Health Care Stock: Handcuff to another good quality Health Care Stock just in case your investment suffers an injury...
In a market like this.. you limit your losses strategically...
2) In Fantasy Football, teams don't give up on a #1 Position Player just because he's out for the next 2 weeks.
Taking my advice from #1, do not Liquidate out of a stock into your Handcuff!!
Instead, do the homework. Unless you are absolutely convinced there's no short term turnaround that's going to happen for your injured stock, do not liquidate.
I'd sell off 25% of my injured stock and dump the money into the Handcuff. If things get worse, I siphon off another 25% and etc.
3) In Fantasy Football, sometimes you dump a talented Wide Receiver for a Lesser Wide Receiver simply because the Lesser Wide Receiver is playing on a different, much better quality team with a much better quarterback.
Besides having 5 Handcuff Stocks for your 5 Portfolio Investment Stocks.... You need some other stocks sitting on your Watch List that you may not like as much but are in a different sector of the economy.
For example: How do you switch to the Health Care Sector if your HOMEWORK has to start from scratch just to find a company that's doing well? That's wrong!
Using your watch list effectively... You can *Track* that Health Care sector and jump in at the right time with an excellent Health Care Play sitting right there in your Watch List.
I have lots of other advice for later.. In the meantime...I hope this helps!