Allocation of capital into Fundamentals vs. T/A?

[NewOrder]

Hi

newbie here and I am enjoying reading the forums.

I am still in the self education stages of investing/trading and have about 6 months to go before stepping in live. Through the course of my studies I have decided to split my capital and invest based on Fundamentals concentrating on Top 100 ASX. I am also planing on trading within a medium time frame, weekly to monthly.
My trading plans are almost in place, I am happy with most aspects of money management, risk management etc (except stop loss which I need more work on).

What I am not so sure of is how to divide my capital between the two strategies. I guess it is fairly arbitrary in a way as I am not looking for much in the way of money out in the short term, most will be put back into my trading pool.
Anyway does anyone have some good suggestions on how much weight is good to put to each portfolio?

Cheers

 

[skc]

Hi

newbie here and I am enjoying reading the forums.

I am still in the self education stages of investing/trading and have about 6 months to go before stepping in live. Through the course of my studies I have decided to split my capital and invest based on Fundamentals concentrating on Top 100 ASX. I am also planing on trading within a medium time frame, weekly to monthly.
My trading plans are almost in place, I am happy with most aspects of money management, risk management etc (except stop loss which I need more work on).

What I am not so sure of is how to divide my capital between the two strategies. I guess it is fairly arbitrary in a way as I am not looking for much in the way of money out in the short term, most will be put back into my trading pool.
Anyway does anyone have some good suggestions on how much weight is good to put to each portfolio?

Cheers

A few suggestions

- Fixed proportion e.g. 50:50
- Switch around depending on market condition
- Go all in on the part that makes you the higher risk-adjusted return

Peronsally I am ~70% trading vs 30% investments.. but I am a full time trader. The 30% is there to generate some passive income.

 

[NewOrder]

Thanks skc, you have given me a couple of ways of looking at it I would like to have a fairly fixed strategy in regard to capital allocation to start with until I know my way around more.

Cheers