I was a day-trader, trading stocks quicker than you could imagine. It was exhilarating. It was sometimes profitable. It was RISKY.
I had fun buying and selling my tech and oil stocks, but I soon found that it was not as profitable as I thought it was. I would make a huge profit and waste it away through a hundred bad trades.
Give portions to seven, yes to eight, for you do not know what disaster may come upon the land. -Ecclesiastes 11:2 NIV
It is clearly better to spread out your investments than go “all in” on one venture. I was told this by my broker, but didn’t really listen. I suffered the consequences.
There is so much value in diversifying your investments. If one sector of the economy is suffering, chances are another won’t be. This creates a stabilizing effect that nearly ensures that your investments are safe over a long period of time.
Try mutual funds! A mutual fund is a group of investments that is diversified amongst a wide range of market sectors. Look for mutual funds with long-term track records for decreased risk.
At times, I’m tempted to invest in single stocks. But I’m much wiser than my day-trading days, and I think I’ll just say “no thanks” from now on. How about you?