You may have noticed that, here at Dent Research, there’s one critical piece of information missing from our investment recommendations. That is: How much should you invest in each play? And readers don’t let us forget it. They hound us with that question often. Our standard response is: “We cannot offer individual investment advice.” Then we add: “Always only invest as much as you’re comfortable with.” In short, we dodge the question. In our defense, there really is no direct way for us to answer you, because deciding how much of your hard-earned money to invest in the stock market is very personal. It depends on the size of your account, your risk tolerance, and your current situation. There’s no one-size-fits-all number we can give you. But that doesn’t mean you can’t find YOUR size-fits-best number. And it’s important that you do. This way, you’ll be able to ensure you risk roughly similar proportions of your total account on each play. Also, doing so helps you avoid wild swings in your account balance… or at the very least, reduce the volatility attributable to mismatched position sizes. So here’s some guidance on how to find YOUR number…
Posted on: Tue, 08 Apr 2014 20:48:45 +0000
Recently Viewed Topics
© 2015