A successful self trader – Rule # 42
THIS RULE IS APPLICABLE WHETHER YOU ARE A TRADER OR AN INVESTOR. THE LARGER THE STOCK UNIVERSE, THE LESS TIME AND ENERGY YOU ARE ABLE TO DEVOTE TO EACH OF YOUR POSITIONS. ALSO, IF YOU ARE LOOKING AT DIVERSIFICATION OF YOUR RISK, IT HARDLY WORKS BEYOND A POINT. BEYOND THE FIRST 8-10 STOCKS, YOU ONLY END UP SUBSTITUTING RISK, NOT MITIGATING IT. YOU ALSO MISS OUT ON SCORES OF OPPORTUNITIES THAT GO DOWN THE DRAIN. WATCH OUT! Continue reading
