I like that idea of owning a core holding and trading around that position with smaller blocks. I think it keeps you mentally alert to the short as well as long term moves in the market.
I recently read the book Hedge Fund Market Wizards, which I would highly recommend, and one of the traders in that book does the same thing as a risk management devise. Many many different styles of successful investing and trading. One of the common themes though is the necessity of finding a way to manage risks. Everyone has to find their own style that he or she is comfortable with. Most of the successful traders seem to have a strong contrarian streak in their personality.