So, since last week I felt like a pullback was coming, I set stop losses on most everything.  I got out of Costco (COST), Kraft (KFT) and Microsoft (MSFT) and went to 20% cash.  When things pull back I'll use that cash to hop onto some low lying fruit and ride the return back up.

Apple is a tough stock simply because it WILL go higher.  But, it also has some insane drops from people taking out their profit.  I set up a stop on it and if I hit that, I'll look to buy more shares with the same money after it drops.  I repeat, with the SAME MONEY.

Let's say you buy a stock for $10 and it goes to $20.  You sell it and it drops back down to $10.  Now you can buy twice as many shares for the SAME MONEY.  That's how you make money in the market.  By riding these ups and downs, not by hitting home runs all the time, (though those are nice, see Apple.) 

Pick a few stocks you like, see what their high and lows tend to be and trade between those and you'll be rockin'.

Invest in peace...