Puting everything on one card sounds tempting at first. If the investor hits his stock, his assets may increase in no time. But be careful: only beginners make this mistake and do not distribute their investment capital over several companies. Because the supposedly great chance of a single investment is also offset by a correspondingly high risk. Experienced investors sprinkle their risk and never put everything on one stock. If the paper develops in the wrong direction, the entire investment capital is in danger. On the other hand, if you invest in several companies, you will significantly reduce your risk. Ideally, investors not only invest in several shares, but also invest in different industries, countries and investment classes (bonds, raw materials, shares, etc.). The reason: Anyone who only acts shares in a country is hit harder by an economic crisis in this country than an investor who invests worldwide. The same applies to people who only act shares in an industry. The shares in an industry usually develop in parallel because they are subject to the same framework conditions. In the event of an industry crisis, all values can also lose value at the same time. And if you only rely on shares, look into the tube with a general stock market crash. On the other hand, if you still keep bonds or raw materials such as gold in your portfolio, you may alleviate the loss of price of your stock positions by rising the gold and bonds. It is therefore essential that your broker offers a variety of securities and products from which you can put together your portfolio. At Finance.net Zero you can easily act more than 6,000 shares, over 2000 ETFs and ETFs and more than 300,000 certificates.
