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Common Investing Questions
We get this question a lot, and it’s impossible to answer, because every investor’s objectives and risk tolerance are different.
The short answer: That’s entirely up to you and your broker.
In general, we do recommend two risk management principles: 1) following a “position sizing” discipline that works for you and 2) using trailing stops to protect your principal and your profits. Beyond that, we can’t offer any advice about how much to invest in any position.
One rule of thumb you may want to follow is to make certain you don’t have any more than 2% of your risk capital exposed to any single investment (unless specifically advised by the editor). Studies show that this helps keep risk down to palatable levels, while still allowing you to build a diversified risk portfolio capable of stellar performance over time.
When your 2% max investment is combined with a 25% trailing stop, you should never lose more than 0.5% of the value of your total portfolio on any one play. Let’s say you have $100,000 to invest. The max you would put into any position is $2,000. And with a 25% trailing stop, the most you could ever lose in that play is $500 (1/200th of your total).
When it comes to controlling risk and position sizing, there are many rules, but one trumps them all… don’t play the game if you don’t have the cash to back it up.
Note: The Securities and Exchange Commission regulates the financial publication industry. Due to regulations enforced by this agency, we are prohibited from providing our customers with personalized investment advice. Because we are financial journalists – not advisors or brokers – newsletters and investment advisories should never be interpreted as personalized investment advice. Any decisions related to investment amounts should be left entirely up to you and your broker
Money Map Press is not a broker, dealer, or licensed investment advisor. We are a publisher and are prohibited from providing individual investment advice. As a courtesy to our subscribers, we provide a list of brokers on our website. No person or company on that list should be considered as permitted to engage in rendering personalized investment, legal, or other professional advice as an agent of Money Map Press. Money Map Press does not receive any compensation for these services. Additionally, any individual services rendered to Money Map Press by the companies listed are considered completely separate from and outside the scope of services offered by Money Map Press. Any contact and resulting relationship is strictly between you and the company.
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If you have recently found a charge on your credit card or bank statement from PSV*Extreme Profit Hunter it’s because you’ve subscribed to our publication by the name of Extreme Profit Hunters. In order to access your subscription, please click here to login to our members-only website. Your username is your email address and if you need to reset or create your password, please click here.
The PSV* before the name of the newsletter stands for “publishing services,” indicating that the charge is for a newsletter service. Other publishing houses use this same acronym. Following this is the name of the publication. In general, the PSV* designation appears only on Visa card statements (please see below image for reference). The phone number for the Money Map Press Customer Service Department is also listed in case you have a question or concern about the charge. In fact, we highly encourage you to reach out to us by phone at 1-888-384-8339 or email us via our Customer Service Form if you need any explanations or clarification on the charge prior to reaching out to your credit card company or bank. Our customer service representatives are more than happy to explain and assist you!