Any equity trader could improve its portfolio's growth by considering two decks of cards which have in total only 108 cards. The normal procedure will be to consider 52 cards to represent all the investments done in one single company at a time during the lifetime of the portfolio. For example, if the trader opened a position for a single company by betting the ranch, he will put away one card from the deck of cards. And he will repeat this process for the remaining investments. The red ones will represent the investments which resulted in a loss while the black ones will represent the investments which resulted in a gain.
Once the deck of cards is out cards, the equity trader can not make any more investments at all. Under those rules, he will be forced to think carefully about what he is going to do and thus, in the long run, he will do much better.
One will ask himself why such an approach? Quite often, the traders overemphasize the concept of portfolio diversification while their initial capital is low. Then, they have a tendency to think of placing their limited capital here and there, and then wait for the results while hoping for the best. Instead, they should concentrate upon one company at a time and set to themselves a take-profit level; once reached, they will transfer the grown capital into another company and this will continue until a satisfactory level is reached. Thus, with the use of a deck of cards, this will simplify the matters and put some discipline into the affairs.
This approach is very simple and is very efficient in changing the life of the trader. It will help him quite a lot in beating the market by a wide margin over a long period of time.
