It drives me nuts when I hear someone say “I am fully invested.” What this means is they have no extra capital to deploy into
1. A new opportunity, or
2. Average down into a current position (if the initial trade drops but you expect gains moving forward.
You MUST always keep some capital in reserve! NEVER be “fully invested.”
So how much capital reserves should you keep? This is a great question. In my experience a very aggressive trader will want to keep between 10 and 20% of their total investment capital in reserve.
GM
IDK if I've ever seen or heard ANYONE on CNBCBS or FauxBiz say "keep some powder dry". Rather it's FOMO BTFD TINA STONKS never go DOWN this time is DIFFERENT blah blah blah....
Thank you again Greg you're the best!