General Stock Ideas

[gfp927z]

This move to zero commissions will be great for us investors who like to dollar cost average with smaller amounts each month. While some ETFs were already commission-free, now they'll all be that way. So hot diggidy :o)

It's also possible now to buy small amounts of individual stocks for free. I'll be trying to refrain from that temptation, but the idea of building your own custom ETF may be hard to resist :o) Previously, the only way to do this was over at Motif Investing, and then you had to initially pay $9.95, and also something like $4.95 to make any changes or do rebalancing. The only advantage Motif will have now is the ability to buy fractional shares.

But using sector ETFs will still be better than picking individual stocks in most situations. One exception would be for building a broad portfolio of favorite stocks from diverse sectors. With zero commissions and no minimum per stock (1 share minimum), you could build a portfolio gradually using small amounts of money, and be free to add, subtract, or rebalance at no cost.

Sounds too good to be true, but you have to avoid the urge to trade too much since that's how investors tend to lose money, by being too short term oriented. Bottom line, I wouldn't put more than 5% into individual stocks, and then use very strict position limits. I have a 'favorites list' a mile long (link below), but an aging bull market isn't the time to be going gaga over stocks.


https://investorshub.advfn.com/Best-Long-Term-Stock-Ideas-25585/