Well, so far I've learned that there's a direct relationship between the amount I've invested and the return I've earned. Given the funds that I have set aside for this purpose, I've only been 55% invested at a maximum since I've started this exercise. And on average, I'd say I'm usually about 25% invested. This is mostly by design as I've wanted to make sure that I have funds on hand in case the market has a precipitous drop that presents a great buying opportunity. But this also means that I've had a lot of cash sitting idle at any given point of time.
I'm going to make a slight tweak to my strategy. I've established a standard "ante" which I use to buy-in to a given stock. Assuming I guy in at the perfect time, I do not buy any more of the stock and later sell at a nice profit. But there are also occasions when I double-up or perhaps even triple-up my investment if the price drops further and the stock remains attractive. Of course, I sometimes deviate from the standard amount depending on my comfort level for the given stock. For example, I use a much smaller lot sizes for my "spice up" investments given their higher risk.
The tweak I am making is to increase the standard "ante" investment by 20%. This should increase my percentage of invested funds and decrease my already-low expense ratio.
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