Thanks for sharing, I feel like not enough people talk about this. Especially as a beginner I felt lost about position sizing. The book "The Missing Billionaires" has a coin flip experiment as an analogy that says that even with 20% positions your portfolio can recover from losses. But I agree with you that psychology plays a big part here as well. Not everyone is made to see their portfolio drop by that much and stay calm, me included.
Thanks for sharing, I feel like not enough people talk about this. Especially as a beginner I felt lost about position sizing. The book "The Missing Billionaires" has a coin flip experiment as an analogy that says that even with 20% positions your portfolio can recover from losses. But I agree with you that psychology plays a big part here as well. Not everyone is made to see their portfolio drop by that much and stay calm, me included.
Thank you for the feedback. In my opinion, position sizing is the most under appreciated aspect of investing.
Great insights into portfolio strategy!
Thanks for the feedback 👍