Articles on: Using Weekly Stocktip

How much should I allocate to each signal?

How much should I allocate to each signal?

The best allocation and diversification strategy for you depends on your personal situation and risk tolerance.

if you are unsure on how to diversify or allocate your savings, always contact a registered financial advisor. Weekly Stocktip does not provide personalized financial advice and will not be able to assist you with your specific situation, however here are a few general recommendations for diversification using our strategy.

Weekly investments.

If you are not already starting with a large portfolio, but instead save up and invest on a monthly/weekly basis, we recommend an equal weight allocation. (e.g. investing $100 or $500 every week). This will provide good diversification and dollar-cost averaging over time.

Starting with a size-able portfolio

On the other hand if you already have a size-able portfolio and want to allocate a larger sum, ideally you would want to make sure that some of the stocks have time to do a round-trip from BUY signal to SELL signal, freeing up your allocation for new investments

For this we recommend splitting your portfolio into 1-2 years' worth of signals. (at least 52). So for example if you want to invest $25,000 our recommendation to use Weekly Stocktip would be to invest $480 in each signal over time.

However if at any point you become 100% invested or would have less than the minimum recommended investment amount of $100 to invest, you can always pause your subscription. Pausing your subscription allows you to still have access to the SELL signals, and whenever you are ready you can resume your subscription again when you'd like to add to your portfolio.

Use Dollar-cost averaging to:

Avoid mistiming the market
Slowly but surely build wealth even if you're starting out with a small stake.
Always think longer term

There are 2 important parts to diversification.

Firstly, don't put all your eggs in one basket. (this is the part you have to manage)

The second part is making sure your portfolio is adequately diversified across multiple sectors and industries, so if any single sector has a crash you will be protected.
Weekly Stocktip already handles this part for you with our internal diversification strategy, making sure you're not too expected to a particular sector.

Always make sure you have adequate diversification and dollar-cost average over time to minimize risk.

Read more about diversification

Updated on: 02/10/2020

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