I mentioned about using 80% of your trading funds into the top...

I mentioned about using 80% of your trading funds into the top 20 stocks. Many see this as a cowards way of investing, but these companies are in this position for a reason, and that is top management, overall wealth, dividend yields and market dominance, etc. It's not grand or flash by buying in the top stocks, as other stocks will be zooming past with 20 to 30% gains in a day at times making you feel left behind.

But like those driver's you see zig zagging through the traffic, desperately trying to beat everyone is encountered by you at every set of lights with you finally leaving him behind as a truck pulls in front to turn right - you just nicely and calmly do very well without giving yourself ulcers.
Calm is the key. Theses stocks that can have massive gains in one day will fall even faster when the market turns against them. On a real bad day mid cap stocks generally fall 25%. Top blue chip stocks fall about 5 to 10%. But on these days you'll see Fosters, Tesltra, Woolworths, CSL and Newcrest possibly making gains.

So you've used the 80% I said to allocate. What about the remaining 20%? Here is where you can increase your exposure to risk by buying into small/mid play energy, mining and gold stocks. Again do not put too much into one stock, but spread the funds over numerous stocks. With these you must set stop losses to get you out if they fall below key levels - you don't want to be left holding an ABC living and learning or a Babcock and Brown do you!