09-08-2015, 01:04 PM
(09-08-2015, 12:21 PM)Rasec Wrote: What do you guys define as a full position vs a half position? Is there a rule or it's up to everyone to define?
Say I own 10K of stock ABC and 2k of stock XYZ, is ABC a full position, even if I want to buy more and don't want more of XYZ?
Can't speak for anyone else but it's going to be all relative anyways ie. everyone is going to have their own sizing + rules + goals + strategy
In general, a stock is full size for me when my forward 12 month dividends for the position reach $1,000.
Obviously that's not going to be apples to apples because stocks are going to have different dividend yields so you're going to put way more money into KO to reach $1,000 than you are going to put into T or BP to reach the same $1,000.
But that's kind of what I want. An equity yielding 7.5%+ is (in general) probably currently in a bit more precarious spot than KO yielding 3.0% so while I'm willing to take the risk on the BP's to reap the rewards of a high yield, I'm looking to risk less absolute dollars than I am on KO. I'm willing to risk $30K on KO yielding 3.3% but only $14K on RDS.B yielding 7.5% and both will pay me (hopefully) $1,000 in the next year.
When all of my positions, or maybe the majority, reach $1,000 / year in dividends for me then the bar will reset and a full size position will bump to $1,500 or $2,000 / year in dividends.