Stock trading Strategies

Limit active stock trades to 10% of a portfolio

If you want to buy stocks, try to keep these to 10% or less of your total investment portfolio. Again, actively managed stock market strategies that seek to beat the market regularly underperform passive strategies.

If you throw all of your money into one or a few companies, you’re banking on success that could quickly be halted by a single regulatory problem, new competitor or public relations disaster. If you still have a strong interest in actively trading with a portion of your portfolio, some stockbrokers offer educational tools and simulators that allow you to practice trading before you dive in.

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