I believe in choosing the right investment for you takes time, practice, and diligence. I always recommend speaking with an expert to start the process. It doesn't mean you need to pay for him forever. However it hopefully will put you in the right direction.

Joker wrote: Diversification and risk aversion are the names of my games. I choose investment opportunities that move conversely with each other. Some would say that I am hedging my bets. You are absolutely correct. I don't want to be left without any income simply because the market hiccupped and now stocks are down. I know too many people that lost a large portion of their retirement portfolio by not having enough diversification. Do your research and diversify your portfolio to make the optimal amount you can over the years. You will be glad you did.

Agreed. I am fine investing into higher risky equity stocks like tech, etc, but I am much more about diversification than anything. Over my investment life (30+ years), I just hope to grow my wealth slowly.

Joker wrote: Diversification and risk aversion are the names of my games.

Me too, Joker. Sometimes it seems penny foolish though. I'm young enough that it will be a long time before I draw social security or retire. I keep thinking I should invest in something riskier that has a greater return like Bitcoin or domain flipping, but it makes me sweat just to think about moving my money into a potential bomb. I'm more comfortable with a slow and steady approach. This characteristic might be costing me potential earnings.

Diversification and risk aversion are the names of my games. I choose investment opportunities that move conversely with each other. Some would say that I am hedging my bets. You are absolutely correct. I don't want to be left without any income simply because the market hiccupped and now stocks are down. I know too many people that lost a large portion of their retirement portfolio by not having enough diversification. Do your research and diversify your portfolio to make the optimal amount you can over the years. You will be glad you did.

eghh I don't buy it. If that happens the entire market will crash. ETFs are not MBS in anyway.

FrankN wrote: I also invest my own portfolio and focus on cheap broadly diverse index ETFs.

I'm on board with that strategy too. It worries me when articles pop up in the Financial Times and the Wall Street Journal every now and then about ETFs becoming the next financial bubble like Mortgage-Backed Securities (MBS) were during 2008. What do you think?

Moneyes wrote: I find the forex to be fascinating, to be quite honest. I have done work before concerning those markets and the easiest pair to keep track of, for me, is the U.S. Dollar against the Japanese Yen. I think it's because of the major types of business trade we do with that country.

I recently signed up for a TD Ameritrade account to play at Forex trading, and it's very difficult to come out ahead. They give you play money so you can learn the ins and outs before gambling with your own cash. And, it feels very much like gambling to me. I haven't focused on the Japanese Yen but will try it for the next few rounds.

How do you feel about penny stocks FrankN? I have dabbled in them before with good returns. I still have difficulty knowing when to sell though. My hubby is the stock person and he keeps up with that stuff every day. Is there a magic formula for knowing?

I also invest my own portfolio and focus on cheap broadly diverse index ETFs. I ride with the total market and don't really pick specific stocks. My investment horizon is 40+ years so I am focused on total growth and minimal expenses.

I find the forex to be fascinating, to be quite honest. I have done work before concerning those markets and the easiest pair to keep track of, for me, is the U.S. Dollar against the Japanese Yen. I think it's because of the major types of business trade we do with that country.

I couldn't agree more with having a diversified portfolio. As the manager of my own portfolio, it can be very time consuming, but I get to make my own decisions driven by my own goals and it's nice to see where my choices have taken me.

Thanks for this insight into investing, Danydebrown. I think that people don't realize just how important it is to follow these steps when you are considering taking this kind of risk. Making an investment plan is a really important step that I don't think a lot of people do. How would you recommend someone go about doing this step? Should they consult an investor for this?