Eggs, they are yummy, they are good for you but when they are all in one basket it could be spelling out instant death! As history will show us what is hot today is not necessarily going to be hot tomorrow, because of this investing 100% into the hottest thing today could be very very bad to your personal finances very quickly. diversifying your portfolio is the solution.
The stock market is a wonderful and interesting place, thousands and thousands of stocks are listed and changing in price every second. Always be aware of what you are investing in, do research on what the company is, what their plans are, what their stock has been doing, how their sector is doing, what is their market share in their sector…ect, It seams very foolish to invest in a company that you know nothing about. Because of this I will only buy two or three stocks a year.
Some people preform in a task that I look down on “day trading” these people gamble in a fast past low informed market where they may only own a stock for a few minutes to cash out the positive change of 1/8 a dollar. To me it just seams like stocks should be used more long term and you should be more informed with what you are going to do with your money. Next week we cover Bonds!
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