I am a newbie investor so I'd like to get as much input. I have three investment accounts: 401K, Individual Brokerage (through robo-investing 70/30 allocation), and third, another Individual account with my own choosing of individual stocks, funds, and bonds.
Is the third account good for long-term investment? For this account, I've only invested the amount I am willing to lose (even if it happens overnight). I essentially opened this account to get myself some hands-on experience with trading and the nature of the market. I read that individual stock-picking is high-risk so I added in some index funds and bonds in the mix as some form of buffer. I've diversified my individual stock picks to the best of knowledge (large to small sized companies, INTL companies, different sectors, etc.). Considering my individual stock diversification and say I've chosen the right stocks at the right time, would it still not matter in the long run due to the market's volatility? Would I be better off by just having a portfolio strictly consisting of good low-cost index funds and bonds for longer-term investing? Is an index fund/individual stock mix investment a set to fail approach?
Thanks in advance.
Leave a Reply