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  1. #1
    AlexaaNus Guest

    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. #2
    AlexeyMoila Guest

    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. #3
    AlfredCoern Guest

    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. #4
    Alfredkib Guest

    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. #5
    Alispetrlug Guest

    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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