My anthem all along in my years trading stocks from paper to electronic has been that long term is a summation of short terms and that a bird in hand is worth 2 in the bush.
I only do a max of 3 stocks often 2 which I always monitor every day. Here im talking about price,any changes in management of that coompany,action of competitors,macro economic environment etc. Truth is it's easier for you to know almost everything about something as opposed to something about everything.
These 2 stocks must be:
1) Growth stocks - Doing profits of 40% plus or have future potential.
2) Liquid - Very important coz of ease of entry & exit.
3) Darling of foreigners/Elicit foreign investor interest.
Im currently invested in Safaricom & KCB.
The picks keep changing depending on the fortunes of the company. For instance,i dumped Equity for KCB in October 2011 & I have been trading it since then(buying in dips & selling in surges). Waiting to see its Q1 2013 to know if it'l still be in my best 2. Equity bank kept me going from 2006-2011 due to its high growth rates then but clearly KCB has been able to come out strong since. Before that I had EABL,MSC, & KQ which I dumped in 2004,2005 & 2006. Safaricom also meets my above criteria & will still remain in my portfolio.
I have also learnt never to get emotional with stocks. If they cease to meet my criteria outlined above,i dump them like yesterday. Case in point is EABL, KQ,MSC & Equity & that todays winners are not necessary tomorrows,hence the need to constantly evaluate & revise your stock picks.
There is also the need for timing. To know the best time to get in & also out. Greed & fear are always at play. Managing these makes all the difference.
Happy investing @stocksguru. Hope 2013 works out for you investmentwise!
Be blessed!
@SufficientlyP