Q: Educate me please:
I’m new to investing on my own. Previously used an investor who chose mutual funds for me – mistake!!! I know now that no-one is going to care about my money as much as me – so I’ve taken all my investments out of the hands of my investor and am slowly transferring my mutual funds into stocks. I’ve only been at this two months and already my stocks are doing better than the mutual funds ever did! But, I need some discipline, a plan and guidance.
My questions:
1. How many companies do you recommend someone should own in a portfolio. With a portfolio of say $100,000.
2. Should each company holding be of equal value and if yes, should I have equal number of shares in each company or equal amount of money in each company? Example: Wi-Lan at $6.00 a share and Boyd Group Income Fund at $12.00 a share. And I have $20,000 to invest in these 2 stocks. Should I put equal amount of money ($10,000) in each stock (about 1500 shares of Wi-Lan and 800 shares of Boyd Group Income Fund)? Or equal amount of shares (1000 shares) of each company?
3. I’ve read elsewhere that when investing I should only put in ½ of what I intend to invest in that company, then the other ½ if the stock decreases by 5% or increases by 5%. What do you think about that strategy? I’ve had this happen to me, I invest one day and the stock goes down the next day 5%, and I’ve had it go the other way increases by 5% the next day. If you agree with this strategy, how far should I let the stock go down or go up before re-investing the other ½? And how long should I wait, say if it goes down 5% the next day should I re-invest the other 1/2 next day, or wait a week or a month?
Thank-you for all your help, I’m learning so much from everyone’s questions and your answers. I wish I could attend your seminar next week, maybe sometime in the future you could have a Webinar where we could enroll in your seminar and be able to listen to it live and ask questions over the web instead of attending in person.
I’m new to investing on my own. Previously used an investor who chose mutual funds for me – mistake!!! I know now that no-one is going to care about my money as much as me – so I’ve taken all my investments out of the hands of my investor and am slowly transferring my mutual funds into stocks. I’ve only been at this two months and already my stocks are doing better than the mutual funds ever did! But, I need some discipline, a plan and guidance.
My questions:
1. How many companies do you recommend someone should own in a portfolio. With a portfolio of say $100,000.
2. Should each company holding be of equal value and if yes, should I have equal number of shares in each company or equal amount of money in each company? Example: Wi-Lan at $6.00 a share and Boyd Group Income Fund at $12.00 a share. And I have $20,000 to invest in these 2 stocks. Should I put equal amount of money ($10,000) in each stock (about 1500 shares of Wi-Lan and 800 shares of Boyd Group Income Fund)? Or equal amount of shares (1000 shares) of each company?
3. I’ve read elsewhere that when investing I should only put in ½ of what I intend to invest in that company, then the other ½ if the stock decreases by 5% or increases by 5%. What do you think about that strategy? I’ve had this happen to me, I invest one day and the stock goes down the next day 5%, and I’ve had it go the other way increases by 5% the next day. If you agree with this strategy, how far should I let the stock go down or go up before re-investing the other ½? And how long should I wait, say if it goes down 5% the next day should I re-invest the other 1/2 next day, or wait a week or a month?
Thank-you for all your help, I’m learning so much from everyone’s questions and your answers. I wish I could attend your seminar next week, maybe sometime in the future you could have a Webinar where we could enroll in your seminar and be able to listen to it live and ask questions over the web instead of attending in person.
