So you shifted to stocks after you got frustrated with mutual funds? Ok, I hope you..
understood the difference between trading and investing, long term and short term, luck and skill
have a thoroughly and rigorously backtested system if you're a trader and a razor sharp crystal clear investment strategy if you're an investor.
understood how many stocks are ideal in a portfolio and the concept of position sizing.
understood how much cash to keep in hand and where exactly to keep that cash.
understood the concept of asset allocation. A one stock portfolio is 100% equity and 100% in one stock.
understood how stock exchanges work, how orders work, and know each part of your contract note
understood how brokers work, what are margin requirements, what are settlement dates, how much money you need to have in your bank
most of this is required even if you invest in mutual funds but it's essential to know this (and much more) when you jump into buying stocks.
and finally, I hope you track your stock portfolio as closely as you tracked your mutual funds. I wish you all the very best. Fin.
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.