I, like many, am prone to swings in emotion during bull and bear moves in the stock market. One way to avoid selling during pessimism, or buying near tops, is to document the reasons for buying into a stock in the first place and then reviewing these reasons to confirm that nothing has changed. As I am not very good at keeping notes I have decided to record my decisions here.
I have also been guilty of over-trading in the past and intend to reduce my purchases to a handful a month when funds allow.
My preference is the macro picture and investing according to long term trends/cycles.
My plan is to initially have 20 individual positions of £1k, 20% will be physical commodities, 80% equities, but no more than 30% (of the 80%) dedicated to commodity stocks.
This allocation is because I believe that we are in a commodity bull market that started in 1998 and should run through to 2015 (they typically last around 18 years).
Anyway that's the theory, lets see what really happens.