Replies to post #44936 on lowtrade

[lowtrade]

I haven't heard of that rule. But I have heard of only holding 2 to 3% of your portfolio cash in each investment stock at the big boards. That's called a diversification rule.

As far as The size of a position in either the national exchanges or the OTC. My Rule of Thumb is: don't hold more the 10% of the average daily volume traded. This will do 2 things. 1st allow the size of retail interest large enough so you can sell out quickly without having any problem. 2nd keep the amount your trying to move in or out from driving the price in any direction.