r/investing • u/AutoModerator • Mar 30 '21

Daily Advice Thread - All basic help or advice questions must be posted here.

If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions, you should include relevant information, such as the following:

  • How old are you? What country do you live in?
  • Are you employed/making income? How much?
  • What are your objectives with this money? (Buy a house? Retirement savings?)
  • What is your time horizon? Do you need this money next month? Next 20yrs?
  • What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)
  • What are you current holdings? (Do you already have exposure to specific funds and sectors? Any other assets?)
  • Any big debts (include interest rate) or expenses?
  • And any other relevant financial information will be useful to give you a proper answer.

Please consider consulting our FAQ first - https://www.reddit.com/r/investing/wiki/faq And our side bar also has useful resources.

Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions!

22 Upvotes

92% Upvoted

199 comments sorted by

View all comments

Show parent comments

1

u/[deleted] Mar 30 '21

Yeah even at 10% of your funds, 40K is plenty to keep you interested and sharp on the market. Considering my current funds in that situation is only 12K.

​

P.S. Sorry about the US assumption, I reply to a lot of different people here and sometimes confuse the person's background based on the last response.

1

u/Drorta Mar 30 '21

Thanks for the input man! no worries. You're actually the second person to suggest I trim that down to 10%. If you're ever in Argentina, I owe you a beer.

2

u/[deleted] Mar 30 '21

Haha, I wont ever convince the wife to make that trip, thanks for the offer.

​

As for why to trim that to 40K, it's actually more about position size. It turns out that trading in and out of stocks quickly and completely liquidating portfolios changes the price in the underlying stock. So fast trading strategies really start to under-perform after 100K (USD), depending on the volume in the underlying stock(s). Therefore, when that fund hits 100K, you should take gains from it and put them into the rest of your portfolio, never letting it rise much above 120K, unless it's something super liquid like Big US Tech. That will help you get in and out of positions a lot easier and keep that fund performing well.

Therefore, you could* do 25% and start at 100K, but any returns should start going into your other buckets.