Alert: Don't panic sell, but book profits
As we stated in our watchlist post yesterday, that you should be cautious in Dec for taking any long positions. Today we are seeing a large sell off in tech.
We are raising cash, meaning selling some overbought, overstretched stocks. For eg. sell 20% of each stock which is in profit.
We will refrain from adding any large position in Dec and sit on this 20% cash.
We recommend to stay invested in good quality stocks and that should be around 80% of your portfolio.
Don't use Margin. Never use Margin. In margin calls you have to sell your good quality stocks to cover it.