How many shares of stock should a beginning investor
purchase from a particular company?
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I agree that you should change your handle. I was interested in your question
until I saw that, and immediately it makes me want to have nothing to do with
you.
Kathy in NJ
there is no perfect number for beginners or advanced traders. the number is a
certain percentage of your total portfolio. max risk i would accept is 20% of
the portfolio in one stock position. for my own account, 10% is too much and
time to take profits.
so if youve got $1000 total to invest, 200 is the max for one position. that can
be comprised of 100 shares of a $2 stock, or 1 share of a $200 stock. the amount
of shares makes no difference and shouldnt be your focal point. percentages are
what you'll want to put your focus on.
I like no more than 20% in the sector or 10/10 pair.
An 'even lot' is 100, but you don't always have enough $$ to get that much. I
have plenty of positions that are odd numbers--17 shares, 110 shares. It
affects your execution more than anything else (big money usually buys in even
lots).
Keep in mind that you're almost never buying *from the company*. You're buying
your shares from someone else just like you who wants to get rid of the stock.
Keep that in mind, because there's always another side of your trade. They
think they're right to be selling, too...
And we would appreciate it if you change your handle. It's inappropriate and
unnecessary on this site.
Welcome to StockPickr!
(j)
James
It might be an old fashioned word to you, but Americans only heard it when
thousands of us were slaughtered. We will associate the two for many decades to
come. It is more provocative than the word "warrior" and similar
words.
If you made a dumb mistake, fix it. Change it.
No kidding. You can take that name and go post on some other message board.
You shouldn't buy all at once. You should decide beforehand your exit price
also. Decide what your total position will be, and buy in thirds on the way
down. You can sell in thirds also.
What's with the name jihad19 ? A lot of Americans take great offense to that.
Myself included.
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