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| Topic | Stock Topic 18 |
| red sox 777 01/30/21 8:35:45 AM #54: | Responding to the interesting discussion on position sizing from last topic: Now that I have six figures, the game plan was always to get a lot more conservative from here, I think I will still likely be investing a good portion of the money in my Ameritrade account at all times, I'm just going to diversify a lot more, do more brief swing trades with 10k or 20k invested. Don't think I'm willing to ever do a position size more than half of my portfolio anymore, no matter how high my conviction on a trade might be. That sounds very reasonable and I'm happy to hear that. I think it is good - you have more money at risk now, money that is harder to make back if it is lost. Half is probably the most I'll put on any one position also, and only with very high conviction ideas. A regular strong conviction idea I'll probably do no more than 1/3. My average play gets allocated a little less than 10%. To me between $1000 and $5000 sounds reasonable On 175k, 5k is less than 3%. Which is fine for a high variance stock in a diversified portfolio. 1k seems low. At that point, the amount of work you would need to do to fill your portfolio with investments is probably too much. Like, if you have 5-10 stocks, it's relatively easy to keep up with news and ideas about them so that you are investing intelligently. If you have 40 stocks it's like a full time job and if you have 100 stocks I don't know how one person would have enough time to do it. You might as well buy a fund at that point. Although, from previous conversations I think you keep most of it in cash, right? In which case I guess the allocation discussion would go differently. I mean, on the one hand I think it's silly to keep a huge cash hoard like that; on the other hand, if you can't handle the emotional rollercoaster of investing it's probably better not to do it. --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest! ... Copied to Clipboard! |
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