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  1. Default Cash allocation per share and max number of shares held??

    I am in the process of reviewing the overall ways in which I trade and need some help.

    I was wondering what peoples suggestions are for how much capital should be allocated to each share purchase? I assume that a % of total capital should always be held for that no brainer trade that comes along as well?

    Secondly, I was wondering how many shares should I hold at any one time? What do people think is manageable?

    I would also be interested in how other traders operate with the above questions in mind..

    Any feedback would be most appreciated.

  2. Default

    This topic is covered very well in Colin Nicholson's books. He goes for a max of 6% in any one share and also a max % in any one sector. So theoretically he might have up to 16 companies but this is probably too many. The % of capital in the market depends on where we are in the cycle. At the end of February he was about 50:50 shares:cash and buying.

  3. Default

    Thank you for taking the time to share this with me. It is interesting to note not only the 6% allocation but also the max % sector allocation as well....I will look up his books and do some more reading on this topic.

  4. Default

    The % of capital in the market depends on where we are in the cycle. At the end of February he was about 50:50 shares:cash and buying.

  5. Default

    I would also be interested in how other traders operate with the above questions in mind..

  6. Default

    At the end of February he was about 50:50 shares:cash and buying

 

 

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