How Do You Build an Investment in a Stock Like Boeing or Tesla?
When meticulous research and consideration has led you to pick a stock to buy, how should you go about investing in it? Carefully crafting your approach to adding shares of any given stock can work wonders to bolster your portfolio's overall returns.
Because there are different ways to do this depending on the company in question, several factors need to be considered. In this article, we will explore how to approach building a new investment in two very different companies, using Boeing (NYSE: BA) and Tesla (NASDAQ: TSLA) as juxtaposed examples.
First, it's important to preset the amount of exposure you want to have in a stock. This works better when determining the desired position size based on a percentage of your portfolio rather than a specific dollar amount. Incremental additions to or subtractions from account balances should not drastically impact your approach to a stock purchase. Choosing your positions based on percentages helps ensure that they won't.
Source Fool.com
