Help with building VP

[LazyInvestor]

Of course the real danger in all this will come if inflation spikes, oil explodes and Russia suddenly gets hot again. Your micro VP will suddenly make you look (and maybe feel) like the greatest financial prophet since Peter Lynch. And you will be kicking yourself for not putting more money into it. Gambling addicts aren't created by losing. They get addicted when they win.

You are right. It's not worth the upside temptation. I have closed all these 3 positions right after reading this. Thanks.

[MachineGhost]

My true VP (i.e. money I can afford to -- and expected to -- lose) is around 1% of my total portfolio, divided among 5 individual stocks.  Overall, these have returned 7% total over 3.5 years (so 2% CAGR).  Basically, I've had one big winner (+220%), one moderate winner (+15%), two pretty big losers (-35%, -60%), and one wipe-out (-98%). 

The main thing it has taught me is that I don't enjoy speculating, and that 1% total VP is about right for me.

I don't enjoy it either because it wastes up a lot of time.  Time is money.  When the stock isn't moving, going in the wrong direction, going in the wrong trend, etc.. it just reminds me that I rather get in and out with a quick gain than hope (a four lettered word) it does exceptionally above average to beat the curse of time.  After over two decades, I have yet to find any investment strategy that beats frequent compounding vis a vis time.  I fear it just doesn't exist.

Next time use a trailing stop and you may improve your net gain.  There's no point holding onto a loser.  You want a bell curve of your return distribution with a positive skew, not equal or negative.