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Posted by Keith There is no exact rule that fits everyone level of risk/reward. Some investment advisors will say never spend more than 2% of your total capital on one trade. I think that rule works for individual stocks, but it does have it's downside. By being so diversified you also limit your gains. A question for you. How many other stocks are you buying? Are they in different industries? I hope this helps?
Link: Stock Investment Guide
on 7/3/2007, 6:07 am, in reply to "how much"
Hi Dan,
Keith
Stock Phases
Stock Investment Guide for all investors
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