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Only invest WHAT YOU CAN AFFORD to lose in stocks and shares. Stocks and shares can go down as well as up so it can be a risky game.
Another way of looking into how much to invest in stock and keep in savings is dependent on your age. e.g. I am 25 years old. That should represent the amount I money I have in tied cash savings i.e. 25% in cash savings. From that 100%-25%=75%, can be invested in the stock market.
The thinking behind this, is because I am young (its all relative), should I lose a large bulk of the 75% in stocks, I have time and potential earnings to recouperate my losses. As you get older, say nearing my retirement age, say 60. I should have approx. 60% in cash savings and 40% in Stocks.
Take this as an indicator. I have set it up so WHAT I CAN AFFORD is distributed 25% and 75%.
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Tip: Never do your shoe lace up in a revolving door
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