I am sure you covered this somewhere, but what is the general strategy for funding one's hundred percent?What I mean is this:If my goal is to fund 200,000 - which place in my account (as cash).And I buy my first stock (x) for 5.0% I now have 95% in cash. What is the strategy for the other 95%.I have simplified the question.When I am up to 30% what is my strategy for the remainder.Please refer me to the answer to this Two Zebras
There isn't any single strategy. Focus on buying good companies and don't sweat the timing. If the company has strong growth potential, you won't be kicking yourself in 5-10 years if you could have gotten in a dollar earlier. Use your available cash, and when you need more cash to purchase another position, look to your least performing, least potential assets for liquidation.FuskieWho emphasizes it's not so much about the cash but about the company...
I agree with Fuskie, but note that many use an allocation system to develop a broad, diversified portfolio. A portfolio of growth stocks can be an excellent strategy, but over concentration in one industry or one sector can make you highly vulnerable in a crash.Pick the industries you like and allocate to your comfort level, but if you are heavy into say tech stocks, don't forget there are quality stocks out there in other sectors too like agriculture, housing, pharmaceuticals, and sometimes even recreational products. A few blue chips can also be a good choice. And don't forget some of those cyclicals that may be due to recover.This has to be customized to your interests, but its a useful concept to keep in mind.
re: Gunsre: RGR, SWHCTwo Zebras,The art of compounding your monies over and over as a swing trader is the Secret to your success.http://finance.yahoo.com/blogs/breakout/gun-stocks-money-mak...Not bad 600% in 3 years for RGR. However, we can make more by trading per the bubbles and or the labels in doing what Simon Sez to do with simple instructions.Nice dividends for RGR as well and none for SHWC. The RGR dividends will buy more shares because of the Special Dividends.http://stockcharts.com/h-sc/ui?s=RGR&p=D&yr=0&mn...http://stockcharts.com/h-sc/ui?s=SWHC&p=D&yr=0&m...http://www.dividend.com/dividend-stocks/consumer-goods/sport...http://www.dividendinvestor.com/historical.php?no=33272Quillnpenn - a poor church mouse scratching for a living as a professional swing trader.http://investorshub.advfn.com/boards/board.aspx?board_id=109...
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