Your overall strategy and key components of your strategy.
And a couple of things to me start thinking about that is one, to kind of trade what, you know, famous
investors like Warren Buffett.
He talks a lot about that.
You know, do you have particular expertise in a sector or an industry or a particular company?
Maybe you work for a company or maybe you work within an industry or you are a consumer of an industry.
You just trade what you know and then think about your trading style.
How often do you want to trade?
And you might have time to trade.
So if you're more of a buy and hold investor or trade part time, you might emphasize that fundamental
and that qualitative start stuff more than if you certainly want to do this more full time or be a more
active trader than you want.
Maybe you want to do those two, but you might want to really emphasize and really learn even more and
become really skilled in technical analysis.
And so leverage the tools based on that trading style.
And you can use paper trading to kind of try it out in practice with, you know, and start doing things
like competitive evaluation is fundamental and technical analysis, start building that watch list,
determining what to buy, when to buy it, and then practicing how to buy it all through using paper
trading and deciding like how many stocks you want to trade for.
If you're frequently trading a firm to technical analysis, a lot of times people are looking at only
a few stocks, maybe 5 to 10.
As far as a few stocks that they're actively watching constantly, you know, versus let's say maybe
a buy and hold investor might have a larger number of stocks that they're watching that they're looking
to get in and out of or maybe just buy and hold for a long period of time.
In terms of classic diversification, by the way, people tell you, well, if all you were invested
in was stocks or the stock portion of your portfolio, you might be looking at, let's say, 20 stocks.
I've seen people say talk about 15 to 16 is the number.
Some say 20 to 25.
If you're in that range, especially if you're in different sectors and industries, you can get some
diversification there or get instant diversification by investing in, let's say, an exchange traded
fund where you could get a buy a whole sector like electric car, electric vehicle makers or a broader
industry like the S&P 500, the 500 largest US companies or the Nifty 50, the 50 largest India companies,
for example.
So there's different ways that you can use exchange traded funds to give you more broad diversification.
And then you can trade in, invest in individual stocks around that too, and could be part of a broader
portfolio.
We also maybe on some bonds or some real estate, some cash investments, different things you might
do as well, too.
So the key part of all of this is start thinking about even more about the keys key components and think
about your trading and then feel free.
And I would encourage you, feel free, but I encourage you to certainly practice your paper trading
as well.