Harvhorse
05-14-2016, 11:40 AM
Jitta Loss Chance Jitta
Hello Harvey,
Whenever an investor finds a good business at a price below its value and is ready to buy, one question always comes up:
“What proportion of my portfolio should I invest in this stock?”
This is a very tough question to answer. It is up to each investor’s experience how much opportunity they see in that investment. The more confidence they are, the more they can invest. Generally, we should invest in each stock at least 10% and at most 50% of our portfolio in order to receive a worthwhile return without too much risk.
What many might not know is that we can use Loss Chance on Jitta to calculate the right proportion of each stock by using the formula:
Bet Sizing = 50% - Loss Chance
For example, If Stock A has 35% Loss Chance, that means we can invest around 50% - 35% = 15% of total portfolio value. If our portfolio value is $1,000,000, we can invest $150,000 in Stock A.
If Stock B has 20% Loss Chance, that means we can invest around 30% of our portfolio value.
This formula was developed from Kelly Criterion, a formula that is widely accepted in the investment world. Read more at:
Calculate your investment with Loss Chance
To sum up, Jitta not only makes it easier to find “Wonderful company at a fair price” with Jitta Score and Jitta Line, we also help you quickly allocate your investment in each company with Loss Chance.
We hope you will love Loss Chance just as much as Jitta Score and Jitta Line.
Enjoy investing.
With love,
Trawut
https://www.facebook.com/jittaworldhttps://twitter.com/jittaworldhttps://www.youtube.com/jittaworld
© Jitta
Hello Harvey,
Whenever an investor finds a good business at a price below its value and is ready to buy, one question always comes up:
“What proportion of my portfolio should I invest in this stock?”
This is a very tough question to answer. It is up to each investor’s experience how much opportunity they see in that investment. The more confidence they are, the more they can invest. Generally, we should invest in each stock at least 10% and at most 50% of our portfolio in order to receive a worthwhile return without too much risk.
What many might not know is that we can use Loss Chance on Jitta to calculate the right proportion of each stock by using the formula:
Bet Sizing = 50% - Loss Chance
For example, If Stock A has 35% Loss Chance, that means we can invest around 50% - 35% = 15% of total portfolio value. If our portfolio value is $1,000,000, we can invest $150,000 in Stock A.
If Stock B has 20% Loss Chance, that means we can invest around 30% of our portfolio value.
This formula was developed from Kelly Criterion, a formula that is widely accepted in the investment world. Read more at:
Calculate your investment with Loss Chance
To sum up, Jitta not only makes it easier to find “Wonderful company at a fair price” with Jitta Score and Jitta Line, we also help you quickly allocate your investment in each company with Loss Chance.
We hope you will love Loss Chance just as much as Jitta Score and Jitta Line.
Enjoy investing.
With love,
Trawut
https://www.facebook.com/jittaworldhttps://twitter.com/jittaworldhttps://www.youtube.com/jittaworld
© Jitta