There is much disagreement over what constitutes the correct stock trading position size as a portion of your overall trading capital.

Using your stock trading trend indicators is the best way to determine how much you should bet on each trade.

If your analysis and indicators are very strong, bet more. If you have only one indication that a trend is going in a particular direction, bet small as you can always increase your investment as the trend is confirmed in your direction.

And diversify to spread your risk. Not only in different securities but also different sectors. If all your investments are in technology stocks you are not really diversified at all.

Dave J

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