#How to make a choice
How to choose stocks when funds are insufficient
👉Holding a heavy position to buy a few stocks can lead to higher profits, but also greater losses when incurring losses. It's not possible to find stocks that will definitely rise 100% of the time. If you're lucky enough to buy the right stocks, it's great, but if you pick the wrong ones, your funds may be trapped.![]()
👉Diversify your investments by making small purchases of stocks to reduce risk. However, because you're buying small amounts of multiple stocks, the profits from each stock become small after deducting handling fees and commissions, resulting in even less actual profit. Managing multiple stocks with small investments also takes a lot of time and effort.
I personally prefer diversified investments.
Due to limited funds, it is rare to buy stocks with a high stock price, usually blue chip stocks, although they have potential, the prices are quite expensive (several hundred or even several thousand yuan), while buying a small amount of low-priced stocks, it is tiring and the profit earned is minimal.
Small gains, big gains. For now, don't worry about how much money you've made, but how much you've earned in percentage of your total investment capital. As long as you earn a higher rate than the interest on a bank deposit, that's already pretty good.
Greed is a common problem for people, everyone wants to make big money. But greed often leads people to become opportunistic, and being opportunistic turns investments into gambling. Before investing, one must have a concept, a correct idea, and mindset.
With insufficient funds, one should be cautious in investing, avoid being hasty, consider small gains as part of learning, slowly accumulate experience, learn from losses, and draw lessons from failures. When you have enough capital and accumulated sufficient experience and knowledge, then investing becomes easier and reduces the risk of losses.
$Nasdaq Composite Index (.IXIC.US)$ $S&P 500 Index (.SPX.US)$ $Dow Jones Industrial Average (.DJI.US)$
👉Holding a heavy position to buy a few stocks can lead to higher profits, but also greater losses when incurring losses. It's not possible to find stocks that will definitely rise 100% of the time. If you're lucky enough to buy the right stocks, it's great, but if you pick the wrong ones, your funds may be trapped.
👉Diversify your investments by making small purchases of stocks to reduce risk. However, because you're buying small amounts of multiple stocks, the profits from each stock become small after deducting handling fees and commissions, resulting in even less actual profit. Managing multiple stocks with small investments also takes a lot of time and effort.
I personally prefer diversified investments.
Due to limited funds, it is rare to buy stocks with a high stock price, usually blue chip stocks, although they have potential, the prices are quite expensive (several hundred or even several thousand yuan), while buying a small amount of low-priced stocks, it is tiring and the profit earned is minimal.
Small gains, big gains. For now, don't worry about how much money you've made, but how much you've earned in percentage of your total investment capital. As long as you earn a higher rate than the interest on a bank deposit, that's already pretty good.
Greed is a common problem for people, everyone wants to make big money. But greed often leads people to become opportunistic, and being opportunistic turns investments into gambling. Before investing, one must have a concept, a correct idea, and mindset.
With insufficient funds, one should be cautious in investing, avoid being hasty, consider small gains as part of learning, slowly accumulate experience, learn from losses, and draw lessons from failures. When you have enough capital and accumulated sufficient experience and knowledge, then investing becomes easier and reduces the risk of losses.
$Nasdaq Composite Index (.IXIC.US)$ $S&P 500 Index (.SPX.US)$ $Dow Jones Industrial Average (.DJI.US)$
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101592553 : Diversify and DCA