I'm not at the beggining of my challenge to beat the NASDAQ market. Now it's the perfect time to answer some important questions about investing strategy. Today I was thinking about how many shares should I buy to my portfolio.
Some factors are very important to consider about this part of strategy.
I don't have much time to follow many shares standings. It takes time to read news and financial standings. That's why I can't buy too many shares and control it.
Buying only one or two shares is extremely risky. Losses of one of them can cause huge loses for the whole portfolio. That's why I have to buy more then just a few shares.
Diversification means minimizing the risk. It's not only about amount of shares. It is also about investing in different industries. It proves that 5 shares is mnimum for me.
Here is another factor to consider. This one is the easiest. Some shares rise and some falls. Profit is the highest in case of minimum shares in portfolio. Only difficult is to invest in the best shares. That's why I can't buy too many shares.
I'm still confused. It looks like 5 - 10 shares will be the best for me. How many shares do you have?