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What is diversification,how best can i to diversify and what percentage works best for new investors? Secondly, is it wise to buy few quantity for each stocks, say 10 per stock
e.g (DANDCEM[10] ,MTN[10] ,GTCO[10]) or should I gather up the money until I get to say 1000 for one stock(DANDCEM[1000] before going to the other Thank you, and God bless
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.
See lessDiversification is actually using the capital you have to invest in different kinds of stops and financial prospect that can in you more money over time rather than putting all your money in one stop or one company which may likely go up or go down day for today specify is to strategically look forRead more
Diversification is actually using the capital you have to invest in different kinds of stops and financial prospect that can in you more money over time rather than putting all your money in one stop or one company which may likely go up or go down day for today specify is to strategically look for other means to grow your portfolio in different vectors like consumer good, like construction oil and gas and banking for better outcome.
See lessI feel like if for instance I'm Just a beginner and want to buy stock with capital below 100k naira, I would focus more on one or two blue chip stock (stable stock) as time goes on I could diversify, Because it gives time to understand the stock market (growth stock etc) and navigate well.
I feel like if for instance I’m Just a beginner and want to buy stock with capital below 100k naira, I would focus more on one or two blue chip stock (stable stock) as time goes on I could diversify, Because it gives time to understand the stock market (growth stock etc) and navigate well.
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