Average Investor's Allocation

Since March 2009, CCP trade the stock market weekly and gradually built up his initial investment capital to a peak of RM 320k.
Early this year, he reduced his stocks holdings to current value of RM 289k with cash in hand & dividend of RM 133k... Total stocks & cash = 289 + 133 = 422k.
Gain = 422 - 320 = 102k ( 32 % ), all in hand.
Note: his cash position 133k = 41% of initial capital (320k) or 32% (total 422k)... Ratio cash 1: 2 stocks approx.

In 2010, ALE started trading the market fortnightly with capital of RM 198k. She has also trimmed her positions in the market and is holding RM 80k cash and RM 160k in stocks, total RM 240k Gain = ( 240-198 ) /198 = 21 % or RM 42k, (near half of her 80k cash in hand)
Note: her cash position = 40% of initial capital (198k) or 33% of total (240k).. Ratio cash 1 : 2 stocks

In comparison, my return incl. dividends = 33 %, current cash holding = 26% of initial capital.. Ratio cash 1: 4 stocks.. Plan to reduce my cash holding by investing into dividend stocks...