Page 1254 - How to Make Money in Stocks Trilogy

236 HOW TO MAKE MONEY IN STOCKS—GETTING STARTED

A General Guideline for How Many Stocks to Own
Based on the concepts above, here is a basic rule of thumb for how many
stocks to have in your portfolio.

Suggested
Portfolio Size Number of Stocks
Under $20,000 2–3 Stocks
$20,000–$200,000 4–5 Stocks
$200,000–$1 million 5–6 Stocks
$1 million–$5 million 6–8 Stocks
Over $5 million 7–10 Stocks

Set a Maximum Number, and Stick to It
As part of your investing game plan, decide the maximum number of stocks
you’ll own at one time. When you reach that cap, stay disciplined: Before you
buy another—presumably better stock—sell your weakest holding to make
room for it.

Bottom line: Be selective and only buy a few top-rated CAN SLIM ®
stocks that pass the Buying Checklist, then watch them very closely. That’s a
more manageable way to grow your portfolio.