Diversification simply means spreading your money across different companies by purchasing units of their shares instead of buying a huge chunk of one company's share.However, diversification is proportional to the amount you're starting with.It is good but that's when you are not starting like someRead more
Diversification simply means spreading your money across different companies by purchasing units of their shares instead of buying a huge chunk of one company’s share.However, diversification is proportional to the amount you’re starting with.It is good but that’s when you are not starting like some of us that could only risk #5,000 for our first stock purchase. To be be honest with you,buying 10 shares here and there feels like diversification, but your money is too small in each stock,so even if price increases, your profit will be very tiny.You won’t really feel the geowth.The best is to make each investment meaningful, not too small. Don’t put everything in one stock but also do not scatter your money too small else you won’t feel the impact of profit.So if you are starting as a beginner the amount you intend to start with will determine if you should diversify or not,we cannot tell someone starting with #5,000 to diversify,you can spend all the #5,000 on a particular company shares,then get another text time and from there begin to add units to the ones you already have.
What is Diversification? and how best can i diversify?
Diversification simply means spreading your money across different companies by purchasing units of their shares instead of buying a huge chunk of one company's share.However, diversification is proportional to the amount you're starting with.It is good but that's when you are not starting like someRead more
Diversification simply means spreading your money across different companies by purchasing units of their shares instead of buying a huge chunk of one company’s share.However, diversification is proportional to the amount you’re starting with.It is good but that’s when you are not starting like some of us that could only risk #5,000 for our first stock purchase. To be be honest with you,buying 10 shares here and there feels like diversification, but your money is too small in each stock,so even if price increases, your profit will be very tiny.You won’t really feel the geowth.The best is to make each investment meaningful, not too small. Don’t put everything in one stock but also do not scatter your money too small else you won’t feel the impact of profit.So if you are starting as a beginner the amount you intend to start with will determine if you should diversify or not,we cannot tell someone starting with #5,000 to diversify,you can spend all the #5,000 on a particular company shares,then get another text time and from there begin to add units to the ones you already have.
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