Right now my account balance at 23yrs old is 30k. Will be managing around 100k in a few months time due to selling some assets. My money management has been very bad in my early years because I was trying to make $2000 into $4000, and $4000 into $8000. Did not want the average market return(7%) with a $2000 account. Anyways as my account size has gotten bigger, I realize I can't put all my eggs in one basket. Are there any specific diversification percentages you guys recommend based on account size? I'm thinking of leaving 25-30% to trade actively/options etc. And the other % for passive. For the passive portfolio however, how much % should I allocate to each stock? Currently in my 30k portfolio I am buying around $2000-$2500 worth each in a stock I like which equates to 6-7%. And when I start managing 100k, what % will it need to be?
I saw your age and wanted to share my cautionary tale. When I was in my mid-20's I got married to a woman who had a lot better handle on money than me and in a nutshell I suddenly had a six figure account to "manage". If you are currently managing a 30k portfolio I would treat your new account like a 30k portfolio until you can prove to yourself you can manage it. Then start gradually adding in the rest of the money to your portfolio. Yes it sucks to have a bunch of your account sitting in cash earning nothing but it is a lot easier going from trading 30k to 35k after a few successful months and gradually building up from there. Besides, now is probably not the time to dump passive funds in this market. Or you can do like I did in the late 90's and dump it all in super safe covered calls (insert sarcasm) and have enough losses to offset your gains for years after.
What's not to say with my passive portfolio I am gonna be buying the S&P/NDX near the 78.6% fib retracement from 2000 high? Bonds and gold miners look very interesting at the moment.