The "Stock Trading Riches" Investment System

[PraveenP]

tffdo, you can change the constant value. I plan to do that eventually, because I don't want to have hundreds or thousands of stocks.

It's just that this part is handled manually, by your judgement. It's not a mechanical rule.

Though, you could follow the variation for mechanically increasing the constant value. In the book, this is the optional rule where, if the position has gone up, you can average the new value and the constant value to get a new, larger constant value.

Also, remember that, even though it is simpler to have the same constant value for all positions, you can have different constant values (for example, a large one for an index fund, and smaller ones for individual stocks).

I try to stress that the basic "Stock Trading Riches" system is simple, so it is easy to customize it to suit your personality and risk/reward goals and tolerance.