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   WELCOME || TRADING SYSTEM || TRADING SIGNAL || PSYCHOLOGY || PORTOFOLIO SIZE || TRADING PHASE ||
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MAKER'S OF MODERN TRADER

PORTOFOLIO SIZE:-

Investors and traders need to realize that preserving their money should be their top priority, rather than appreciation. The More Diversified You Are the More Likely you are to Make Consistent Money.

Preserving capital in today's market brings up questions as to what portfolio size should one have. We give below guide line on the optimization of portfolio Size

While some diversification is good,  it is often easy to get carried away. Unfortunately, too much diversification isn't good for you. You don't need to hold hundreds of securities to be properly diversified. Nobel Prize winner William F. Sharpe published an article  on the effect of diversification on non market risk. As the graph below shows, increasing the number of securities held does reduce your risk, but the reduction becomes negligible once the portfolio reaches 25 or 30 securities, spread across several industries. Indeed, the plot becomes asymptotic at the level of 35 holding