I'm traditionally a "buy and hold" investor, especially since I tend to buy out-of-favor companies that take time to turn around. However, 2008 is not a year that lends itself well to such a strategy. My retirement account, tracked separately at www.covestor.com/mbr/glenncorliss, demonstrates the risk in 2008 of (1) holding out of favor stocks, and (2) not maintaining short positions. Its been a disaster of a year, especially given my investments in financial companies made after they dropped 50% - I caught the proverbial falling knife there, and they continued to fall after I purchased. 

At least for the time being while volatility reigns, I will "rent" stocks, and maintain a significant short position in this account. I am also using some leverage at times, but never more than 150% long, and short positions will effectively hedge out any long positions over 100% of total account value. As of August 29, I'm net neutral on the market (my short positions roughly equal my long positions).

Due to the effects of leverage, which Covestor does not take into account, and short positions, which Covestor considers a use of cash even though it is not, my actual performance on a percentage basis will differ significantly from what is reported on Covestor. In general, Covestor's calculations under-report both losses and gains of accounts with leverage and short positions. I will, on a monthly basis, post my actual cash returns in this blog.

Since account inception on May 8, 2008 through Ausust 28, 2008, portfolio returns actually total 19.6%, compared to 9.0% according to Covestor's calculations. Unfortunately, all of these gains have resulted from short-term trading - something I generally frown upon. I'm not day-trading, but I have been holding many positions for under one month. I look forward to more stable markets, where profits can be made buying under-valued companies and holding them for multi-year periods. I much prefer being an "investor" than a "trader".