No matter your trading experience you know that proper portfolio allocation is a crucial element that is often overlooked. It's overlooked by everyone, from professional to newbie. So don't feel bad. But what we need to do is nail down what we should be doing and that's why I invited Blain Reinkensmeyer owner of StockTradingToGo.com to give us some tips and tricks that we can use in our own portfolio. If you have any feedback please leave a comment and he'll get to you!
New and experienced investors alike should have a set strategy for portfolio allocation as far as the number of total holdings. The key to determining how many stocks should be held at once lies in knowing how much money is in the portfolio. This guide will breakdown the best rules for portfolio allocation.
Here on StockTradingToGo we support a more focused portfolio versus having a list of different holdings. Even for investors that want to remain diversified there are great ways to do so through ETFs so that the overall number of holdings can remain minimal. A simplified portfolio also supports investment success through discipline.