There are few men who can speak with confidence about their investment portfolios. Besides, out of thousands of stocks which ones are the winners? Thats not an easy question to answer as many investors have discovered. Yes you could just follow the popular stocks but thats not where the real money is.
You could just copy your friends portfolios but who is to say they know what theyre doing? Here is an overview of how your portfolio should be structured. Keep in mind that everyone has a different risk tolerance and so you can make adjustments where necessary. We will speak in generic terms here and give percentile ranges instead of exact recommendations. This way you can make your own decision according to your particular situation. To start with, if you know nothing about investing then you need to take the time to learn first. That or just jump into some mutual funds and have someone manage the allocations for you. There is no reason to take unnecessary risks at this point. It is only an unnecessary risk if you lack the proper knowledge. Large Caps. Now there are many investing consultant types who will tell you to put a large percentage in large cap stocks. I say, unless you are big on dividends, which can be a nice constancy, you should only put a small portion of your portfolio in large caps. The reason I recommend this is because these stocks have already seen their glory days. They are wonderful companies but the potential for them to double your money is quite small. So I would recommend a 10% to 20% allocation here depending on your long term goals. Looking for slow less risky growth? Then lean on the latter end of that percentile recommendation. Mid Caps. I believe that mid cap stocks in reality should take the place of the typical large cap recommendations. Why? Because these companies have experienced growth but still have a decent amount of potential to bring great profits. Safe with great potential, sounds like a winner to me. So Im going to recommend a 20% to 30% allocation here depending on your risk tolerance and long term goals. Small Caps. These companies have huge potential if you follow trustworthy recommendations and stick with them. We are not talking about short holds here. We are talking about finding a super star small cap company and sticking with it until it becomes a large cap stock. I would recommend a 30% to 40% allocation here. Micro Caps. This is a personal favorite but I am willing to take the risks. Micro caps are often called penny stocks and dont trade on the normal stock exchanges. Keep in mind that penny stocks are only for those with a big tolerance for risk. If you are uncomfortable with losing money then you should steer clear of this investment all together and use this allocation in other parts of your portfolio. There is a big risk of losing money but a huge potential for big gains not found else where. I would recommend a 10% to 25% allocation depending on your risk tolerance and goals.
Strategies for Securing Low-Interest Personal Loans
In the quest for financial flexibility, personal loans have become a go-to resource for many, offering a lifeline during cash crunches or funding for major life events. However, the key to maximizing their benefits lies in securing loans with the lowest possible interest rates. High-interest loans can lead to a financial drain, so it's crucial to navigate the loan market with a keen eye. This article delves into practical strategies to help you secure personal loans with favorable rates, ensuring your wallet remains healthy.What Exactly is a Penny Stock?
There are a ton of definitions out there for what exactly a penny stock is. The general accepted definition by both the public and the SEC is a stock priced under $5 a share. Usually a penny stock doesnt have much of a history behind it and the company as a whole is valued at $4 million dollars or less.When is the Best Time to Sell Stocks
A lot of work and time is put into selecting the right stock to invest in but it can be quite difficult, and frankly nerve racking to decided when to sell a stock. This is especially true if youre a new investor and investing in Penny Stocks. Much money can be lost by pulling out at the wrong time or holding onto a stock longer than you should have.