How do you decide how to allocate your funds? Are there any rules or guidelines you follow? Do you have a minimum or maximum number of stocks you hold in one sector at one time? If so, why?
I'm trying to figure out a rule of thumb for myself and thats why I'm asking all the questions. I think that I probably want to have more than one, but less than five in my trading account at any one time. One and I could get stuck in an illiquid situation, more than five and it could be hard to keep track of. What do you think?
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