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The Top Secrets of Pro Traders

Trader: Dennis Gartman, strategic investor and author The Gartman LetterJoe Terranova, chief market strategist, Virtus Investment Partners

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Watch Your Weight

Though Terranova’s no stranger to exercise, in this case “watch your weight” strictly involves watching the allocation of capital in your portfolio. Pros carefully spread around their capital and are unafraid to cash out.

“I make sure that no more than one-third of the value of my total portfolio is devoted to any one sector, such as energy or technology,” he said. “The maximum amount that I allocate to any one ‘player’ in any one year is 12 percent of the total investment.”

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