How much should I allocate for each trade?
Our model portfolio for Wanderer Financial begins with a $100,000 account. Each individual’s circumstances differ, obviously, but we will specify in the Trade Alert what we feel is an appropriate trade size. For example, if we specify a trade for 10% size in a $20.00 stock, a $100,000 account would trade $10,000 worth, or 500 shares. It’s not important that you get the quantity exact with each trade, but you should aim to be close. Our trade size is not a number pulled out of a hat. We weigh a lot of factors to determine this number—most importantly, risk.