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1, I don't believe in indexes
2, or being 50% one way or another,
3, I believe in changing my strategy as news unfolds. If I think CBA is going to dive below 40 of course I'm going to sell it.
4, My gut says it's a lot more likely to dive then it will be to hold this stock in the current market.
5, I don't want the extra stress.
6, Of course, first rule of trading is to never try to predict the markets. But the news is just too overwhelming to ignore.
1, Why, averaging into a market index has prooven an easy way to earn a satisfactory return over time, even if you averaged into the market during the great depression you still would have earned a healthy 8% return.
2, why not, it makes sense for a novice not to be 100% in anything, and By being 50% cash 50% stock it would allow you to have the cash available to continue buying into any falls, So you would not be fearing falls you would be hoping for them.
3, when you say news do you mean the headlines on CNN etc, or actual company annoucements. You need to look passed any "Noise" and try and focus on facts, and how these facts are likly to affect the underlying companies. In another thread you named the reason you hold your stocks, and they are all long term fundamental reasons, Trying to make money short term trading using long term fundamentals will give you poor results.
4, So why did you buy it if you felt that way, The market will change it's mind on the future outlook 10 times before the end off october, trying to second guess it is crazy, So people have the skills, some people will do it by accident and alot of people will lose or waste money on trasaction fees trying to guess what every one else is doing.
5, So don't stress then, Establish a system that suits your temprement. More money has been made and kept by those operating systems that suit their personality than those that try and operate systems they are not emotionally cofortable with.
6, If you can't ignore it then you need a system that does not rely on you making rational decisions when your clouded by market noise, hype and fear.