It's easy to find guidelines for how much of my non-retirement portfolio should be in stocks as an asset class (i.e. via mutual funds) but I'm having trouble finding recommendations for how much should be in individual stocks.
I have about $320k in non-retirement accounts.
I have no definite plans to use the money any time soon. I would say that the chances of me needing to use more than half of it in 5 years is maybe 50%, and within 2 years maybe 10%. I guess risk-wise, the point is, if I lost 10% of it overnight, then it would not affect me. (Case in point: this month so far)
I enjoy investing in the stock market, and feel like I do reasonably well. I purchase individual stocks, and some options. I'm obviously aware of the risks of individual stocks and especially options.
How can I determine what is a reasonable percentage to allocate, overall, to individual stocks in my portfolio as a group? What should I additionally consider when determining how to limit the percentage in any one single stock?