Hi tech and others proficient in systems testing and design,
Do you put a portfolio limit in terms of the maximum % that can be allocated to one stock?
If yes -- what do you do when the a stock reaches this?
Eg. if this is set to 30%, and your allocations per trade is $10k out of $100k initial capital, you invest only one parcel into this absolute winner, and it runs like a champion, and triples, what would you do then?
(Obviously, if you pyramid this scenario will come up more often that if you dont)
So -- If you chop some -- how much do you chop?
And for those who dont include such a portfolio limit, is it because you dont want to cap your winners? I would think so.
Responses and discussion would be much appreciated.