Position sizing
How much goes into each pick, and why it matters.
4 min · Beginner · Lesson 2 of 8
Step 1 of 4
Size decides impact
A pick's effect on your total depends on how much of the budget it uses. A 20% drop in a pick holding 40% of the budget costs the portfolio 8%; the same drop in a pick holding 10% costs 2%.
For entertainment and education, not investment advice.