Q:Van quotes William O'Neil advising for a multi-million dollar portfolio you only need hold 6 or 7 of your favorite stocks. I am investing 100000 so does purchasing 4 or 5 of the best performing stocks sound reasonable?
Once you have been stopped out of a share are there any rules as to when to re-enter that share. Should you try to re-enter when the value reaches where you were initially stopped out, or just wait till the market settles down?

A: Position sizing is all about how to meet your objectives. Without a clear statement of your objectives I could not possible answer any of the questions you have posed. The only reasonable answer to each of them is, IT DEPENDS. And what it depends upon is your objectives. Your objectives are half the task of developing a system that fits you. And if you did give me a complete set of objectives, then my answer to each of your questions would probably be at least a chapter long.

However, there is good news because we will be publishing the Definitive Guide to Position Sizing within the next few months and that will be a complete answer to this question.