Quote:
Originally Posted by Spoon
Did that before, won't do it again. Mind you transaction costs have gone way down compared to when I started (~$30/transaction), but at the same time, with only a few thousand dollars, just making the transaction cost back requires your investment to go up by maybe half a percent. And you'll have absolutely no diversification since you're likely holding less than 5 stocks.
As a beginner, this gets boring. So you end up gambling on risky investments and will likely end up losing most if not all of it (happened to me, but lesson learnt - I make slow money now).
Unless you have at least 50-100k to start, I say stick with mutual funds if your goal is to invest. IMO you're starting with the wrong mentality already. You're in gambling mode and will likely have better odds at making money in a casino.
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Pretty much....solid advice. I was doing the same.
Now I'm rebuilding everything, but with Index/couch potato. Boring, but safer, I can sleep better.