Have some long term holds, but also dabble in the derivative market quite a bit with puts and calls.
Had a hunch netflix would tank last year even more once it hit around $180. Shorted it at a $70 dollar strike price and never looked back once it took another massive haircut.
Playing derivatives, especially naked is extremely risky but it is also how the success stories of college grades making a million in a summer trading happen.
For example, I gave some advice to my parents on a short term investment, Apple (aapl) was trading at around 370, february expired calls for $400 were selling for $6 a share, you must buy in blocks of 100 shares so around $600 a block. If you had invested 10k in a short term investment, today that investment is worth $56. You run the risk of the stock going the other way but there are times when you just know a company is going to knock it out of the park.
The 10k investment is now worth over 90k.
There was definate potential you can get stung and so far this year I have got stung on nflx success to date but I feel by the end of the year it will be trading at the yearly lows or much lower, business model does not make sense going forward. There are paying massive amounts for these shows and movies that the networks and film studios can no longer profit on. You may get stung on some derivative trades as a couple cents can be very volatile to your investment, have to keep emotions out of it and understand the fundamentals of the company. Other times just ride the market wave, either way derivates play allows you to take advantage of both a bull market and bear market because you are essentially speculating on the rise or fall of a company.
Its how soros and paulson made so much cash in the last recession, betting against the mbs that were out in play.