Portfolio Sell Off!

On October 13 I sold off my entire portfolio. Thinking back to that date, I did it to purge myself of all the confusion that was circling through my mind.

It was an emotional response and, looking back at the positions I held and at their current price, my account balance would be unchanged if I had done nothing. I can't remember what particular decision drove me to the sell off, but I recall the feeling of relief when I did it. I had been grappling with the current holdings and was confused about what to do, so selling was the only conclusion I could reach.

Then on October 26 I bought ADBE again. 1000 shares. And then I bought BIOD, then more BIOD after it crashed from 3.61 to 2.16, then I bought NBG and SKF as a hedge, then I bought CHK and VLO because commodities were on the rise and the dollar was falling with the new round of QE2 announced by the Fed. Finally I bought SH as a hedge to the portfolio, and sold 500 ADBE shares to lighten that position.

So I have come full circle to being almost fully invested. With a vastly different portfolio. My total positions amount to 35% of my portfolio, with 28% of the portfolio invested in SH, so I am net long. My current positions arranged by size of investment are: ADBE, CHK, VLO, NBG, and BIOD. For hedges I have SH and SKF.

Per my calculations assuming the worst case scenario and every position get cut in half, I stand to lose 10% of the portfolio. Best case scenario I can make 28%. So it looks like a good profit to loss ratio.

So now I wait, until either scenario come to fruition or until I panic again.