“Invest only what you can afford to lose” , “Invest the amount of money you can stomach seeing 80% down” — that’s what you’ve been repeatedly told. But you know better than to listen to strangers on the internet, right?
So, a million dollar question is — are you overinvested?
There is a simple test to know for sure. For it, you’ll need nothing but a paper and access to your portfolio tracker.
First, place the paper on the desk right in front of you. Then, assume your browsing position — hunch over the desk, as you do. Open your portfolio and examine it closely.
If the paper is almost dry (a few teardrop spots are permissible) — you’re all right.
If the paper is soaked in tears — you’re overinvested.