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Any time you are investing, whether you are a new investor or a seasoned investor, it is always important to ensure you maintain an Investing Plan
Investing plans are important because it keeps you on track and from over exposing yourself
"Creating An Investing Plan"
THREAD
Investing plans are important because it keeps you on track and from over exposing yourself
"Creating An Investing Plan"
THREAD
1/
"Assessing Risk"
The first thing you want to do is assess your risk appetite
How much are you willing to risk?
You need to understand how much risk you want to have in your portfolio
The saying goes, "Do not keep all your eggs in 1 basket"
"Assessing Risk"
The first thing you want to do is assess your risk appetite
How much are you willing to risk?
You need to understand how much risk you want to have in your portfolio
The saying goes, "Do not keep all your eggs in 1 basket"
2/
You want to maintain a well diversified portfolio and this also pertains to risk
If you invest in all HIGH FLYING stocks you will have a volatile portfolio
Providing BIG gains at times and BIG losses in other times
As you get older, your appetite for risk should lessen
You want to maintain a well diversified portfolio and this also pertains to risk
If you invest in all HIGH FLYING stocks you will have a volatile portfolio
Providing BIG gains at times and BIG losses in other times
As you get older, your appetite for risk should lessen
3/
In your younger years you have a much longer time horizon to make up any losses, so more risk is expected in your younger years
Younger Years = More growth less Fixed Income
Nearing Retirement = Less growth more Fixed Income
In your younger years you have a much longer time horizon to make up any losses, so more risk is expected in your younger years
Younger Years = More growth less Fixed Income
Nearing Retirement = Less growth more Fixed Income
4/
"Build A Strategy"
Next is the fun part, choosing how you want to build your portfolio
Your appetite for risk will play into this strategy.
Some prefer stock picking, but only do this if you have the time to do the research and stay up with company events
"Build A Strategy"
Next is the fun part, choosing how you want to build your portfolio
Your appetite for risk will play into this strategy.
Some prefer stock picking, but only do this if you have the time to do the research and stay up with company events
5/
Others prefer a hands off approach either because they do not have time or they are not confident in their research ability
If this is the case, this type of investor might go the route of Index Funds and ETFs
Regardless of the route you choose, always maintain diversity
Others prefer a hands off approach either because they do not have time or they are not confident in their research ability
If this is the case, this type of investor might go the route of Index Funds and ETFs
Regardless of the route you choose, always maintain diversity
6/
Diversity can mean many different things
Sector Diversity
Dividends vs Growth
ETFs vs Individual Stocks
Equities vs Bonds
If you build a portfolio that has all this and you are diverse in sectors I think you will prevail in building wealth
Diversity can mean many different things
Sector Diversity
Dividends vs Growth
ETFs vs Individual Stocks
Equities vs Bonds
If you build a portfolio that has all this and you are diverse in sectors I think you will prevail in building wealth
7/
How much exposure you have to each will be part of your plan based on risk and age
Your plan should be revisited a couple times per year
You want to ensure your portfolio is allocated according to your plan
Revisiting could show you are overexposed in certain areas
How much exposure you have to each will be part of your plan based on risk and age
Your plan should be revisited a couple times per year
You want to ensure your portfolio is allocated according to your plan
Revisiting could show you are overexposed in certain areas
8/
Adjust your plan accordingly through your journey
Sticking to your plan in any given year will help you outperform
An investing plan will certainly take your journey to another level
Adjust your plan accordingly through your journey
Sticking to your plan in any given year will help you outperform
An investing plan will certainly take your journey to another level
9/
Want to understand more about how I construct my portfolio, sign up for my weekly newsletter which has a portfolio you can follow along on my weekly moves and I also provide setups for certain charts and entry points.
The newsletter is FREE! https://dividendseeker.substack.com/
Want to understand more about how I construct my portfolio, sign up for my weekly newsletter which has a portfolio you can follow along on my weekly moves and I also provide setups for certain charts and entry points.
The newsletter is FREE! https://dividendseeker.substack.com/
