Do you want to learn about ETFs?
When trading US stocks, ETFs are an indispensable tool. They have a wide range of applications, flexible usage, and mastering them will be a very good money-making tool.
For newcomers to the stock market, the difficulty lies not in how to pick stocks, but in how to avoid risks or minimize them. Often, stocks within each sector go up and down, and we cannot guarantee that the individual stock we choose will be the one that goes up in the sector. When we choose a stock, all the risks are concentrated on that one stock. However, when choosing an ETF for a sector, the risks of individual stocks will be relatively hedged, thereby reducing the holding risk, and the return will not be less than holding individual stocks. Furthermore, it can also relatively reduce the risk of holding a single stock. From the historical data perspective, investing in large cap indices like SPY or QQQ regularly, the annual return can reach 8%, which is quite considerable in the long term. In addition, if you want to choose other ETFs for short-term or long-term holding, or to find strong sectors through ETFs, it is also a feasible method. There are also many methods to choose ETFs, and it entirely depends on personal judgment to make the selection. Lately, I have been watching daily videos from the stock blogger Wolf King US Stocks, which includes weekly analysis and trends of ETFs. Interested friends can search for more information. Learning a little every day will enhance your survival skills in the stock market!
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