Establishing minimum and maximum positions is one of the first steps to successful investing. Even more important is sticking to them if you want to play at the highest level.
For example, the allocations in Keith McCullough’s Long-Only account range between 2% and 6% in equities, and 1% and 4% in commodities. Your sizing may differ, but the same principle applies to any portfolio.
“Somebody on Twitter said, I’m struggling because I keep selling and I only have 50 basis points left.’ Nowhere said never by me that I’m at 50 basis points at my minimum,” McCullough explains in this clip from The Macro Show. “I’ve said it, I’ll say it again: Don’t take your minimum to a level that doesn’t make you money.”
Watch the full clip above.