Position Sizing for Beginners; Selling -50% Losers

The Investing for Beginners Podcast - Your Path to Financial Freedom

Andrew Sather

Investing, Business

4.1 • 1.5K Ratings

🗓️ 25 August 2025

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In this episode, Andrew and Dave delve into listener questions focusing on position sizing and portfolio management. They discuss the merits of tracking total cash versus total percentage and elaborate on the use of spreadsheets and tools like Fiscal AI. The hosts dissect the idea of averaging up on stocks, providing insights on when it might be appropriate based on a company's lifecycle and growth potential. The conversation also ventures into analyzing substantial losses in a portfolio, examining specific stocks like Wynn, Alibaba, Baidu, and Airbnb. Andrew and Dave offer advice on how to evaluate whether a stock's decline is due to short-term issues or more systemic problems, and they underscore the importance of understanding the fundamentals and business lifecycle before making buy or sell decisions. 00:00 Welcome to Investing for Beginners 00:20 Listener Question: Position Sizing 01:33 Understanding Portfolio Percentages 07:42 The Importance of Averaging Up 12:50 Listener Question: Handling Stock Drops 20:09 Exploring Energy Stocks and Cyclical Markets 22:29 Challenges of Investing in the Energy Sector 24:41 Impact of Travel Trends on Casino Stocks 27:04 Analyzing the Future of Casino and Gaming Stocks 30:58 Risks and Rewards of Investing in Chinese Companies 33:58 Lessons from Airbnb's Stock Performance 38:49 When to Sell: Evaluating Fundamental Changes 40:41 Conclusion and Listener Engagement Timestamps are generated by artificial intelligence, and are not 100% accurate depending on the platform used for listening. Today’s show is sponsored by: Go to ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠SHOPIFY.COM/beginners⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ to start selling with Shopify today. Squeeze the most out of your Summer with Liquid I.V. Tear. Pour. Live More. Go to ⁠⁠⁠⁠⁠⁠⁠LIQUID-IV DOT COM⁠⁠⁠⁠⁠⁠⁠ and get 20% off your first order with code INVESTING at checkout. Leesa has a lineup of beautifully crafted mattresses tailored to how you sleep – without the luxury price tag. Go to ⁠⁠⁠Leesa.com⁠⁠⁠, promo code INVESTING for 25% off mattresses PLUS an extra $50 off. What else do Dave and Andrew recommend? Our #1 recommended stock research platform is FinChat (now Fiscal.ai). Get 2 weeks access for free using our link (no card required): ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠fiscal.ai/ifb⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Have questions? Send them to ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠newsletter@einvestingforbeginners.com⁠ SUBSCRIBE TO THE SHOW ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Apple⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Spotify⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠YouTube⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Amazon⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ | ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	I love this podcast because it crushes your dreams and getting rich quick.
0:05.7	They actually got me into reading stats for anything.
0:08.1	You're tuned in to the Investing for Beginners podcast.
0:11.9	Led by Andrew Sather and Dave Ahern.
0:15.4	Step-by-step premium investing guidance for beginners.
0:18.7	Your path to financial freedom starts now.
0:22.8	Start now.
0:29.9	All right, folks.
0:31.1	Welcome to Investing for Beginners podcast.
0:34.2	Today, Andrew and I are going to read a couple listener questions we got recently. So these are a lot of fun.
0:39.9	And we're going to talk about a variety of different things. So buckle in. Here we go. I got,
0:45.2	Hi, Andrew. I've been investing since November of 24. So I'm just learning about position sizing.
0:51.9	When I look at my positions in fidelity, towards the right,
0:54.6	there's total cash and total percentage. To me, it makes sense to invest more in the position
0:59.4	that are doing the best over time. Do I go by the total percentage or total cash? Or am I completely
1:05.9	wrong and just DCA or dollar cost average into all positions? Also, should I invest it all in negative positions or still DCA into them?
1:15.2	Thanks.
1:15.7	So great question, and I guess I'll let you take first volley.
1:20.5	Sounds great.
1:21.9	Smack it over.
1:23.6	I see a common theme in both questions.
1:26.6	I got to cheat and look ahead.
	...

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