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What is the 80-20 rule in trading?

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6 months 1 week ago#3221by Elias
What is the 80-20 rule in trading?
  • Elias
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6 months 1 week ago#3222by Elias
In investing, the 80-20 rule generally holds that 20% of the holdings in a portfolio are responsible for 80% of the portfolio's growth. On the flip side, 20% of a portfolio's holdings could be responsible for 80% of its losses.
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