Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers
Joined: 12/30/2005(UTC)
Posts: 120
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Current positions
Stock A : 30%
Stock B : 30%
Stock C : 30%
Cash : 10%
If I sell Stock B, then portfolio would be
Stock A : 30%
??? : 30%
Stock C : 30%
Cash : 10%
I get no idea on what to do with ??? money, there are 3 possible case
[1] Put the money into Cash
Stock A : 30%
Stock C : 30%
Cash : 40%
[2] Re-balancing portfolio
Stock A : 43%
Stock C : 43%
Cash : 14%
[3] Other better suggestions?
Does anyone have any suggestions on what the correct approach should be used?
Thanks in advance for any suggestion
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Rank: Advanced Member
Groups: Registered, Registered Users, Unverified Users
Joined: 8/12/2005(UTC)
Posts: 73
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I never risk more than 1% of my total asset on any one trade. So I would recalculate with that in mind.
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers
Joined: 11/18/2007(UTC)
Posts: 96
Location: HK
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FormulaPrimer wrote:I never risk more than 1% of my total asset on any one trade. Which means that if you want all your total asset to be fully invested in the market, you'd be a busy boy trying to juggle at least 100 positions.
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