It depends on personal factors as well... In 2022, I got smacked around a lot (I was new and did a lot of bad decisions regarding stocks). I had anticipated that, and only used a little capital until I felt more confident. Starting 2023, my returns were really good - and I'm able to deploy more capital.
That means: I'm good with high volatility. I do have a lot of diversity, but some of those stocks are leftovers from 2021 and early 2022, I just don't have a need to sell them. But on what I'm buying, I'm concentrating a lot more, so my portfolio is getting more and more top-heavy. That's because I feel more confident about my analytic skills now.
It's still too many. Very interesting that there's no change between 20 and 50 anymore. I'll start reducing whenever I see opportunity I guess.
Thank you for the detailed argument!
Ya i used to have like 100 plus but it was just a shit show of worrying about all these stocks and the index funds you get good ones but a whole bunch of shit to that gets propped up by every 401k just buying the index weekly lol. I would agree with the less diversified approach for a better chance at getting way outsized returns and you can do a few things to protect gains if you get some as well with options to but I tend to use puts to enter into positions by selling them its like they pay you to buy a stock at the price you want. If it goes up you keep the cash and wait for the next opportunity or do some of both if you want to get a core position and then sell some puts to add if it does what you want it to do. Same with calls if volatility is high and you think its going sideways calls can be a good way to generate some extra income but u risk being called away and losing some upside. Lots of fun ways to play the market. In crypto I tend to like say buying ETH then shorting it on a futures dex or multiple ones that do airdrops so i get the funding rates which tend to be high plus there token which usually produces decent revenue when staked and if you find one that you have analyzed a lot and understand who the ppl are and are confident then its less risky but still i don't go crazy with those just experiment with a lot of them getting like 40% delta neutral and collecting tokens and then staking them once the initial reward periods over i move to the next same with airdrop farming since i already hold x pairs might as well move them to a chain where ill get a few gs in free tokens like ZK or ZRO were some good ones over the past years i got for doing nothing but moving my LP from one chain to the other.
Sounds good! Good luck! I'll stick to stocks for now, I don't really understand that token stuff :-D
ya if you don't understand a investment best not to mess with it unless you want to learn about it and then understand it there are 1000 ways to skin a cat lol
I have said this somewhere here. I am wealthy and financially free. This is a fact that 90% of my net worth is generated by holding just two stock over decades, first it was AAPL and then NVDA.
Well those definitely were excellent choices :-D Congratulations! Maybe I'll have one of those one day, but I'm not that good yet to be confident enough to hold only one. I'll let you know when it comes to it...