How to invest 30% of your money and buy more if the performance is good, don't put all your eggs in one basket! by Nada 20231122

Hello. This is Nada from Seito Medical School. This time, instead of purchasing 100%, we will try purchasing 30%. I hope you don't have the horrible experience of buying 30% of a watermelon and only finding out the skin.

When you pick up a new product, do you ever wonder whether to buy it in a big box or a small box? When I buy a new product, I buy it even if I spend a certain amount of money if it catches my eye. Suppose there is a large size and a small size. If you miss this opportunity and buy a small box, you don't know if you will have it the next time. So, I buy a big box just in case, but when I take a bite and realize that it was a mistake, it would be a waste to throw it away, and it might be painful to eat the rest.

The same goes for investing: do you put all your money on the line and stick with it, or do you buy 30% of your money and see how it goes before buying more? Which one is better depends on each person. However, single point bets have a strong gambling element and can be said to be high risk and high return. On the other hand, it is better to watch the situation and buy it in stages if it looks good, because you can see the progress along the way, so it is lower risk and lower return.

I know the saying, don't put all your eggs in the basket. If you drop the basket, all the eggs will break. This egg story recommends diversified investment, but if you bet all your money on the stock of one company and unfortunately that company goes bankrupt, if you just bought the stock, you won't be in debt. , you will lose all your funds.

There is also a method called dollar-cost averaging, in which you buy a certain amount more each time period. In that sense, dollar-cost averaging invests a fixed amount regardless of a company's performance, so it is a little different from the method I'm talking about, where you buy based on a company's performance. If you have a stock that you're interested in, you can try buying 30% of it, and if it's good, you can buy more, or if it's bad, you can sell it. It takes a lot of courage to put all your money into one stock. Therefore, it is safe and low-risk and low-return to increase the amount of investment flexibly according to the situation at the time while keeping an eye on the company's situation.

If someone wants to start investing in stocks, it is safer to start by practicing demo trading. Of course, it's just practice, so you don't need to spend any money, but the advantage is that you can enjoy investing as if it were a game. If you are interested in stock investment, it may be wise to start with demo trading and then diversify your trading using the 30% rule during actual trading. See you soon~.