Check Whether You Own a Strong Portfolio or Not?
If you are new for trading, then you may find difficulty in determining how much of your money should be in stocks, what type of stocks you should look for, or what common mistakes you must avoid. Keeping these things in mind, here is post that will help all investors, who are getting ready to buy their first stock.
There is no set-in-stone rule, but generally speaking, as you get older and closer to retirement, you should reduce your exposure to stocks in order to preserve your capital. As a rule of thumb, take your age and subtract it from 110 to find the percentage of your portfolio that should be invested in stocks, and adjust this up or down based on your particular appetite for risk.
An index fund allows you to invest in many stocks by purchasing one investment. For example, an index fund gives you exposure to all 500 stocks in that index.
Index funds can be an excellent tool to diversify your portfolio and reduce your risk. After all, if your money is spread across hundreds of stocks and one crashes, the impact on your overall portfolio is minimal.