I Love Cash

I love to have cash on hand. Even though I don't make too much money with it, I know it's there. I want to have between 10 and 20 percent of my portfolio in cash at all times. If I am unsure where stock prices are headed, I keep more of the portfolio in cash. Why be fully invested in stocks when prices are on the downside? Keep cash instead.

When the Price Direction Indicator says prices are on the upside, I have cash available to buy stocks at good prices.