Well I have made this mistake before where ive placed a stock in a position that is over 30% of my portfolio! It wasnt pretty after the fallout thanks sen.
Anyway im sure im not the only one that finds a stock and gives it more funds than what is technically feasible.
Do others fall for this where fractional posistioning goes out the window because you think youve found something thats going to bring home the mother load?
I know im too heavy on 3 stocks (eka to name 1) at the minute and although diversification has been the catch cry of every taxi driver lately im just wondering do you need to spread your stocks so thin?
If one out of a few stocks in your portfolio (of say 4 or 5 stocks) gains several 100% then are you better off ?
A lot of hypo's and generalisations here but do you get the jist?
- heaps of little parcels in speculative stocks
- handful of speculative stocks
I think for the latter homework/research is absolutley paramount.
Note Lt investors bugger off I'm looking for speedy bucks!