In trading risk management is by way of risking 1-2% of trading capital, any such risk mngt rule in investing?
You can apply the same rule for investing. For example you invest 5% of your capital in a stock and the stop loss could be 15%. Or it could be 20%…so it really depends on what you want and how much you are willing to risk.
If you are a long term investor , you dont really look at the stock after investing.
If you are a short term investor , you put a stop loss to cut your losses !
Anyone who can answer this? Even I would like to know the answer for this question. Thanks