When investing in the stock market, what's a good ratio of money to keep in the stocks vs the money you take out (from gains) if the long term goal is to grow the portfolio?

can you be more specific, i'm confuse with the question posted ?

$$ in stock VS profit take out....... then you say growing your portfolio, are not this contradicting each other. can elaborate ?

It would make the most sense to make the pile grow faster by taking nothing out, that would mean leaving 100% of the gains for reinvestment.

But suppose a percentage is taken out for spending purposes, what would the ideal percentage be?

This post has been edited by Polaris: Aug 31 2008, 11:19 AM

Its all depends on yourself i think. Different ppl have different perspective.

i only risk 2% of my money..usually i invest 10k i only have a risk tolerance of 2% loss on that...(200rm)

So i usually have an account where i take out all the earnings and another where it is left to grow..(i.e 10k left to grow the other 10K earns me cash to spend) roughly thats the idea.You should have multiple accounts personally i prefer trading US market more and thats where most of my cash is.Not to say you cant make money here!

This post has been edited by kikikilly: Aug 31 2008, 08:51 PM

wow your risk tolerance is quite low. Don;t you adjust your stop loss according to the share fluctuations?

Well its a good loss if its 2% only but no harm if its higher- just as long as its not greater then 9% .Yep stop loss is set using average true range

This post has been edited by kikikilly: Sep 6 2008, 06:34 PM