Beginner's Notes on US Stocks 60

Yesterday's sharing received a lot of comments. Thank you all so much! I hope everyone lives a long and prosperous life with endless wealth~

Originally, recording my trades was meant to organize my thoughts, but another important reason was to exchange ideas and learn with everyone. Based on your comments, I’ve had some reflections—not necessarily correct—just for my own records. What suits me best is what matters most.

1. Diversified Allocation vs. Concentrated Allocation

This mainly depends on your investment goals and position sizing. My investment goal is capital preservation and growth. The money in my US stock account is meant to stay untouched for 10-20 years, serving as a supplement to my retirement fund (I’m still young and can contribute to social security…). For growth, my target is to secure 10% and aim for 20%. Currently, my return is 15%, which aligns with my expectations. My capital isn’t large, so buying too many stocks means I can’t hold much of each. This was a problem I faced earlier—no room for day trading (T+0).

Given this, I have two accounts. This account is growth-oriented, mainly tech stocks + too much UNH. I’ll narrow it down to 5 or fewer: UNH, AMZN, NVDA, META, GOOG (in descending order of position size), with no single stock exceeding 20%. I’ll review profits annually and move gains to the other account. The other account is stability-focused, currently holding BRKL, LLY, and ZIM.

As you can see, I’m still diversified and can’t concentrate on just one or two stocks. The core reason is that I genuinely don’t know how and don’t trust my analysis. I also believe making money is 50% luck and 50% effort—no one knows if luck will be on their side. All I can do is control risks and prepare for any outcome. My personal rules: no options, no shorting, no leverage, no full positions. Diversifying across tech, healthcare, and others is a form of risk management. Stocks are inherently high-risk, so under my model, they shouldn’t exceed 30% of my net disposable assets (excluding my home and liabilities).

2. Timing for Adding Positions

There’s regret over missing lows and pain over not selling at highs—and the frustration of buying before drops and selling before rallies. All this reminds me I’m no expert, and luck hasn’t always favored me. My preferred method for adding positions: (1) Control total exposure—e.g., decide how much of a single stock aligns with your target. Everyone has their own plan. Overall, keep positions at 60-70%, never below 60% or above 80%. (2) Scale in over at least 5 entries, spaced out over time.