How many stocks should I own?
The amount of money you want to invest in stocks is a personal decision that you and
your financial professional should discuss. Once you have made that decision, this is the
number of individual stocks you should own to maximize your chances of real success.
If you own too many stocks, your results will be “watered-down” if you get
aboard the one or two “super-stars” that can really propel your portfolio higher.
Amount To Invest In Stocks and the Number of Stocks to Own
$5,000 or Less: 1-2 Stocks
$5,000 – $10,000: 2-3 Stocks
$10,0000 – $25,000: 3-4 Stocks
$25,000 – $100,000: 4-5 Stocks
$100,000 – $1,000,000: 5-6 Stocks
$1,000,000 – $5,000,000: 6-8 Stocks
Over $5,000,000: 7-8 Stocks
Some traders enter the market by buying 1/2 positions in up to 10 stocks and then sell the weaker acting stocks and move the money to the stronger ones.
*These are just guidelines and represent the opinion of the author. This is not investment advice. Always consult an investment professional before making any investment decisions. Trading involves risk. Always trade responsibly.
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