Re:
I like the creative thought here, so I'm not condeming anyone's ideas. Let's keep them rolling. Sifer, I'll get to you some how on AIM. It hasn't worked properly.
On Investing...
I've battled back n forth with this idea. Some investors, top investors, such as the Group of TurtleTraders and even Jesse Livermore believed in going ahead UNTIL the investment no longer performed as well as expected. The problem MOST investors have is in KNOWING a top or bottom. They might pull too early or too late.
It's not a precise science.
There are those investors who could buy a stock that doubles quickly, feel it's topped out, and remove half the profit so as to 'diversify' only to put it in a stock that performs not quite as well or goes down.
It happens. Anyone not thinking GOOG or AAPL or TIE could go up as much or as strong found themselves LOSING out on incredible gains.
GOOG has gone from 85 to 475 or so.
TIE has gone from 2 to 75 or so, while splitting twice, too.
SOME advisors, licensed advisors would say "Dump it, it's gapped up, it's gone up too fast."
TurtleTraders would say, "Ride the trend until a significant turn occurs.
------------------------
Here's a theory that applies MOSTLY in stock investing but could be spread across other arenas. It was garnered from many sources, but FEW investors go that route.
It's about Pyramiding profits. In investing, traditionally, it's heresy. But for the elite investors, it's how incredible gains are racked up.
TurtleTraders would get in to an investment, as would Jesse Livermore. If it went up 10%, they'd contribute MORE capital. If it went up ANOTHER 10% they'd contribute more. And so on. They'd keep going. Each step of the way they RATCHET up the stop point of where a loss is acceptable. Yes, your exposure to 1 company increases, but so does your overall return, which is what we are out for.
Otherwise, you take the gambling view, put $1,000 into a bunch of stocks and PRAY a few go up, and some go down, and some stay flat. Buffett would say that capital is too precious for such things.
Buffett didn't pull money from successful investments, he just never COMMITTED more money to an overly exuberant market. The same would hold true, IF, you knew such things when the market seemed to top out in the late 90's, and 00'.
---------------------------
One could say...
Those are the super-rich, pro's, what worked for them, might not work here, now.
Not true. To be LIKE the rich, or pro's, you have to IMITATE them.
NOW, I'll say this, IF I had profits made in my current investment, to diminish risk, I'd take SOME of the profits and deploy them elsewhere, IF I knew the next investment was worth it.
Both Robert Kiyosaki AND Benjamin Graham supports the idea of "Margin of Safety", where when you buy some investment X, you know the profit was essentially built in that day. That the profit, or appreciation isn't hope, or perception, but reality.
It'd be like buying a house YOU KNOW is below market, in a rising market. Or buy Coca-Cola down 50% of it's AVERAGE price. Or buying Berkshire Hathaway down 30%. You know the value is there, only the market killed it somewhat.
Why would you do that?
Let's say I but Stock X, with $1,000, and it goes to $10,000, which can happen very easily. If you sell NOW you face Income Taxes because you sold under 1 year. BUT, let's say you use $5,000 to plunk down on income producing property. The money was garnered out of nowhere, and yes, taxes must be paid on the 5k of gain you have, BUT, I assume MOST investors aren't in the top tax bracket, and when they get there, they'd exercise BETTER tax and legal advice than just dumping a stock. On that SAME stock, you COULD use a margin loan to buy the property. VERY VERY risk, since the loan is out, the property BETTER be able to pay itself OR you better have cash available, because if your stock goes down, you could get a margin call.
They're all forms of creative buying and selling, BUT, it can work. And the better you are, the more you make.
Alot of people LIVE for Cap Gains in purchasing, but it's INCOME that we desire in the future and NOW. If you have a property or income producing instrument, the underlying asset incurs appreciation, as well as some inflation hedge on the income itself.
I'm learning R/E more and more each day, but getting it done is different. I know the principles, concepts, and some laws, but not as versed as Sifer or STR8UP.
All food for thought.
A-Unit
). 
