Skip to main content
No. of Recommendations: 0

I am a new subscriber to Stock Advisor. I plan to create a portfolio on M1 finance with MF recommendations and setup a recurring investment (say monthly $500). Every month, there are going to be the following activities:

1) Add 2 new stocks to the portfolio (or any number of new stocks recommended by MF)
2) Deposit $500 into the brokerage account

How should I go about rebalancing my portfolio while doing the above actions? One simple way is to add 2 new stocks, and simply rebalance the portfolio to equally split my money across the new set of stocks. But I am not sure if that's a correct strategy. Because I do not know if a stock that MF recommends is a good buy only at a certain price at a certain date/month. May be I shouldn't keep buying it at a higher price in future? When I rebalance, I also end up selling a fraction of a stock I bought in the past - is it ok?

I am not sure if this is too complicated to ask/answer, but any help to understand this better is appreciated.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.