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.