Thursday, November 20, 2003 12:05:31 PM
alan81, on options
Well said, and reflect my opinions as well. I like to simply buy stock while paying attention to paying minimum commissions (i.e. buy in chunks large enough so that the commission is negligible). That way, I believe I'm just hopping into a random spot onto the random walk upwards.
The other point, of course, is to buy in different industries and different geographical localities of interest to diversify. But for small investors reading this, don't attempt to diversify too early. Buy 500 to 1,000 AMD if you want, then, when you can, buy $10,000 to $20,000 of something else. If your interests are diverse enough, after 4 purchases you'll have diversified as much as needed to protect your equity capital.
Well said, and reflect my opinions as well. I like to simply buy stock while paying attention to paying minimum commissions (i.e. buy in chunks large enough so that the commission is negligible). That way, I believe I'm just hopping into a random spot onto the random walk upwards.
The other point, of course, is to buy in different industries and different geographical localities of interest to diversify. But for small investors reading this, don't attempt to diversify too early. Buy 500 to 1,000 AMD if you want, then, when you can, buy $10,000 to $20,000 of something else. If your interests are diverse enough, after 4 purchases you'll have diversified as much as needed to protect your equity capital.
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