Part 2/7:
To alleviate this fear, it’s crucial to approach stock buying with a methodical strategy. DCA is a cornerstone of this approach, allowing investors to mitigate risks while maximizing potential gains.
Sizing Your Purchases: The 10% Rule
To temper emotional responses when buying stocks, one effective piece of advice is to limit the amount of investment in any single stock to no more than 10% of your entire portfolio. This rule serves two purposes: it minimizes risk and spreads exposure across multiple stock options.