My rules don't differ much than yours, except that my typical trading (or longer term) position is 2% rather than 1%. The reason is quite simple, if I go 100% into equity, at 1% I'll need to have 100 different stocks, too much to monitor and also requires a screen of about 200/300 stocks to chose from (right now my screen is typically 100/150 stocks plus few special groups like Dow stocks and SOX, some are duplicated in both). I will double up and sometimes even triple if I think a company has a great potential. Sometimes, I will let a position grow above 2% (like the bu$$ which is now at around 8% and sometimes during the day it could jump to 12%, but very rarely stay that way overnight), but that is because it has grown so much on me in the last five months or so.... Eventually, it will come back to its norm, but as long as it is strong, I don't mind a somewhat higher concentration in strong stocks....
Zeev
