So… Today, in the stock market, I decided to sell my remaining shares of the XIV ETN which I started selling last week (the XIV ETN essentially bets on a fall in volatility). It gained a little over 4% today and has gained a phenomenal gain of over 23% in the past seven days which is nearly a three and a half year gain on average. The stock still appears to have some room to run, but the indicators that I generally look at indicate that the risk-reward is becoming a bit unfavorable. So it probably made sense for me to go ahead and sell instead of taking additional risk for what might amount to be a marginal gain.

Part of being a disciplined investor, and realizing consistent gains over time, involves recognizing solid gains when you see them, taking actions to capitalize on them, and patiently waiting until the next compelling investment opportunity arises; one where the risk-reward becomes favorable for you according to your risk profile. If you operate in this fashion you will experience much success as an investor. And if you need any help with making any of these determinations, you know who to ask… Have a wonderful Monday everyone!