Rethinking Investment Strategies: Lessons from My Journey

As investors, it’s common to sell holdings that have risen significantly and shift to stocks or funds that seem to offer better value. On the surface, this sounds like a solid strategy—but there’s a major flaw: no one can perfectly time market tops and bottoms.

When you sell high, you lose the opportunity for a stock to multiply its value tenfold. On the other hand, buying low often means investing in underperforming stocks that lag behind the S&P for years, dragging down your portfolio’s overall performance.

What’s a better approach? Instead of selling your winners, consider selling your worst performers and investing in assets that are hitting new highs. It’s a challenging concept to adopt, but it can significantly improve your returns.

I learned this the hard way. My past results didn’t meet my expectations—until I developed the Stars model. Observing strategies like SPY and TQQQ, I realized their success comes from incrementally buying higher and selling lower to achieve strong returns.

It’s never too late to refine your strategy and embrace new ways of thinking. What strategies have worked for you? Let’s discuss!