"unless they dramatically rise in value to where I feel they become overvalued." If they decline you wait and wait? Would be hard to make it work. Is not Google to heavily dependent on pay per click you think?
It depends on why they decline. For the most part, I'm not short term trading, but investing. If a stock declines for no fundamental reason, then I probably will wait; or I might buy more. I might also sell if I think there's a better stock to buy. Yes Google is heavily dependant on pay per click. Most companies are heavily dependant on a single source of revenue as well. I'm not concerned about their revenue shrinking anytime soon.
I closed out my HDB position -- because I felt uncomfortable with the margin percentage I was using in these now uncertain times & don't want to risk a margin call. I bought some google 600 & 580 jan 2012 calls. I sold google 450 jan 2013 puts. Will report out my entire portfolio soon. The rationality (or lack of) of the markets confuse me. I think a recession will put my solar stocks at risk. I dont think it will affect google/microsoft long term earnings / valuation -- a possible one or two year dip won't really impact the earnings they make 5 years from now. I was starting to consider buying bac/c, but now that consideration is gone.