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Re: 2% Rule



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I'm not sure if this fits, but I'm currently in a stock mkt investing
class where the instructor recommends only using about 10% of your
investment portfolio for speculative stock trades (just about
everything discussed here would be considered highly speculative.)

She also recommends trading in quantities of 2,000 min lot sizes or ~$20k
in order to avoid getting "scalped" by market makers..  By extension, she
views a minimum portfolio to be around $250k.

If I were to follow these rules-of-thumb I'd never invest in anything but
retirement funds.  I'm curious how many out there share my instructors
view of investing or is it possible to invest with less and not get
clipped? 

Thanks,
Ivan

On Thu, 13 Nov
1997, ramon barros wrote:

> Date: Thu, 13 Nov 1997 05:28:33 +1100
> From: ramon barros <ramon@xxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Re: 2% Rule
> 
> Hi 
> 
> Generally speaking the 2% rule applies to the 'total
> account'.
> 
> regards
> 
> ray
> 
> R Barros
> 101/25 Market Street
> Sydney NSW 2000
> Australia
> 
> e-mail: ramon@xxxxxxxxx
> tel:        61 2 92673470
> fax:       61 2 92673478
> 
> ----------
> > From: Futures-Dec <acc-gwa@xxxxxxxxxxx>
> > To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> > Subject: 2% Rule
> > Date: Thursday, November 13, 1997 3:14 AM
> > 
> > Good morning everyone,
> > 
> > When talking about money management technique, we often hear about the
> > 2% rule, sole rule to survive in the long run.
> > Is that rule applying to the total account or only the total equity
> > less the legal deposit ?  (I mean only the "real" money you can trade
> > with without suffering margin calls).
> > 
> > 
> > Thanks to all.
> > 
> > G. Annee
> > 
> > 
> > 
>