Ask Colin

If after applying the diversification rule and you are above the 6%, do you cut it back (to say 2%) or do you forgo the trade?

I never commit more than 6% of my trading capital to any one stock. If my position size calculation allows me to buy more, I scale back to 6%. However, note that I also stage my way into trades, so I may split that 6% into three lots of 2% as described in the video.

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