The "Stock Trading Riches" Investment System

[PraveenP]

Hi Daisy,

Under the basic Stock Trading Riches system, we are rebalancing each individual stock or fund back to a constant value (i.e. $2,000). We don't increase this constant value because we handle growth at the portfolio level.

At the portfolio level, we cap cash at a maximum percentage (i.e. 30%), and then add a new stock or fund with the excess.

So, the idea is that we account for inflation and growth by adding new positions over time.

That being said, increasing the constant value by a percentage each year is an option that could be tested.