The longer the investment horizon, the larger the portion of the portfolio that should be allocated to stocks. Young investors who are years from retirement can invest more of their portfolio in stocks than the elderly. As you age and your investment horizon shortens, you are less confident that there will be enough good years to offset the bad, and the recommended allocation to stocks decreases. Stocks held alone are riskier than bonds held alone, but due to the magic of diversification you can add some stock to an all-bond portfolio and actually reduce the portfolio's risk. Diversification means not putting all your eggs in one basket even if the basket looks safe.
Size refers to the size of the firm.
For most investors selling is their greatest weakness. Learn the Sell Rules that are guaranteed to keep emotion, ego and greed out of investing. For most investors selling is their greatest weakness. Learn the Sell Rules that are guaranteed to keep emotion, ego and greed out of investing.