80-20 and 50-50 rules

80-20 and 50-50 rules, that's my personal portfolio management secrets.

80-20 means always leave 20% of your account value for hedging

50-50 means for each planned swing trade, always allocate 50% to buy at the support price and sell at the resistance price so that the cost of the other 50% position could drop to zero. Then the position becomes risk free finally.

Why this method works very well? Because the nature of the market is the fluctuation.

2 comments: