31m. Just started investing last week and got some positions. I’ll probably add a couple more etf or stocks in this current down turn and add to the ones I have but Am I diverse enough as it is? I make roughly 2k/month working,( about half of that to expenses)my tax bracket is low rn so just trying to build capital to make it worth putting in an IRA. Thanks in advance don’t pull your punches. Not planning to do options either.
There are many philosophies on trading, so you'll get lots of opinions.
First, you need to state your goals. Personally I'm a long term investor and I would say you are not diverse enough. If you only have 5 positions, I also would not invest in individual stocks, which is mostly what I invest in. But I have probably 100 stocks, which gives me my diversity.
ETFs charge fees, so I'm not a huge fan. I like to avoid fees whenever possible. I also like, for long term, to invest in solid companies and solid industries. For instance, in a crisis people still need energy, toilet paper, food, water, medicine. So I like these.
For some stocks to invest in, look at proven investors. Warren Buffett's portfolio is available online. Look for a stock you like and track it. If it drops, buy it. If it drops again, buy more. If you're afraid to buy more, then it probably wasn't a good choice to begin with.
For short term investing, I usually use small amounts of money because of the risk involved. And don't forget, capital gains is higher on short term investments.
That's my opinion. It has served me pretty well. Good, luck.