I am a newbie NYSE swing trader. I have just finished Toni Turner's "A Beginner's Guide to Short-Term Trading". I would like to know what you all think of the following capital allocation rule she gives in chapter 11. I quote, "Commit no more than 33 1/3 percent , or one-third of the capital in your account, to a single equity. " The more common rule I've read elsewhere is to use a 5 to 10% per stock limit. I currently using a 5% allocation with a 10% lost limit on each position. ( I found that a 10% allocation limit with a 10% lost limit was generating too costly "tuition fees".) But I would like to know where she came up with the 33 1/3 percent figure. Its so specific that I have to think there's some reasoning behind it. I have sent her website a email, but it may not be answered for awhile, and I would really like to know. Once I've got the trading skills down pat on 5%, I'd like to get my allocation up to lock in more profits from my efforts.