Quote Originally Posted by f35c View Post
Mike, your breakout list indeed includes 41 stocks.

Since you only get into 10 at any one time, and perhaps for some of us it's even less e.g. start with 8 and then try to get down to 3 or 4, is it a matter of breakout timing and profits that create your chosen stocks? e.g. Mr. Market does the choosing for you?
You raise an important point; stock selections in the real world are made under capital constraints. The spreadsheet I posted did not live under those limitations. I created the spreadsheet to demonstrate to myself that a simple set of six sell rules will work in the current range-bound market. The rules by their very nature have a long-term investing horizon. In choppy markets, many people move to shorter term trading; my nature is to go longer.

In real stock picking if your capital is full employed you have to make choices. In my portfolio, if I am not fully margined I will usually extend further on margin when I want to enter a new position. If that exposure is too high for my comfort, I will plan to exit a position that is not working as well. If the new position is to be sold because of non-performance, it will usually happen sooner than later. The margin level then self-corrects. If the new position works immediately, then I will pick the worst performing stock in my holdings to sell. If I am all-in, then I need to liquidate first and then buy.

These are deluxe problems to have.