Most of the time when we invest directly in the stock market, we worry about target prices and buy below prices.
There's obviously a good reason for that. Those two numbers dictate how much we can make. What's more, they're readily available from our brokers, investment group, and even on facebook.
What's missing though is something that we almost never consider: how much money to place on a stock.
Again, there's an obvious reason for that: we invest what we can, when we can. In fact, we might be investing it regularly through cost-averaging. And over the long-term it hardly matters how much.
But of course, not everyone really goes long-term. We say it to ourselves and then something happens and we get shaken by the market. Maybe we sell early or we seriously ponder (maybe even worry) about it. Maybe we banish it to the back of our minds, tell ourselves we're in it for the long term and ignore it altogether (the Ostrich effect; yet another one of the
"irrational" money behaviors).
It actually doesn't have to be that way. And in fact, it shouldn't be. That's where position sizing comes in.
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%2Band%2Bit%2Bmight%2Bbe%2Bhelpful%2Bto%2Bgo%2Bthrough%2Bthem%2C%2Bsince%2Bcriminals%2Bare%2Blikely%2Bto%2Bcycle%2Bthrough%2Bthem%2Buntil%2Bit%2Bdoesn%27t%2Bwork.jpg "8 Modus Operandi To Rob You Of Your Money. There's been a lot of scams over the years (decades, probably) and it might be helpful to go through them, since criminals are likely to cycle through them until it doesn't work anymore. So here's a list of 8 modus operandi, that hopefully will never work on anyone again.")
,+phishing,+pharming,+email+spoofing,+and+various+ot.jpg "Protect Yourself From Pretexting and Internet Fraud. These days, thieves after your money are more likely to resort to pretexting (calling with a make believe story to get your info), phishing, pharming, email spoofing, and various other cans than to use the plain, old stick'em-up routine. how do you protect yourself?")
