Do you have a rule for how much you add when a stock falls? For example, if a position is already at your max size (say 10%) and the price drops for non-fundamental reasons, do you keep adding until it returns to the original 10% weight? Also, when adding new capital, do you “reset” the position sizing so that the original 10% effectively becomes, say, 9%?
I know it boils down to personal preference, but I'm curious what your thoughts are on this. Thanks again!
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Thanks for the article! I have 2 questions:
Do you have a rule for how much you add when a stock falls? For example, if a position is already at your max size (say 10%) and the price drops for non-fundamental reasons, do you keep adding until it returns to the original 10% weight? Also, when adding new capital, do you “reset” the position sizing so that the original 10% effectively becomes, say, 9%?
I know it boils down to personal preference, but I'm curious what your thoughts are on this. Thanks again!
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