I've recently started investing in the stock market. Am i diversified?

Question

V, MVL, GS, GE, NEM, PEP, CAT, NYX

Answer 1

Pretty good.  There seems to be a bunch of finance-related in there.

Answer 2

I'd call a minimum of twenty stocks to be diversified.  You should also have bonds and international exposure, especially if your portfolio is larger than maybe $20,000.  Use the simple guideline formula of (100 - (your age)) to determine the percentage of your portfolio that should tentatively be dedicated to stocks.  Good luck.

Mutual funds and ETFs will increase your diversification largely if it fits your strategy.

Answer 3

excellant

Answer 4

It's somewhat diversified. Not good. But somewhat diversified.

There's no indication of following anything remotely close to an "asset allocation" plan. No international. If the downturn continues you could suffer a lose of 50% or more.  Is that OK with you? Each of these picks in incredibly aggressive.

I wouldn't be able to sleep at night with this portfolio......

One things for sure... you've been influenced by the media &

unfounded belief that GS & GE are bound to turn around soon.  My question to you..... what's the best time to catch a falling knife?

Do you have an exit plan for these stocks?

A "stop" should have been placed the day you bought them.

The high fliers can drop like lead in a second. Look at the chart for CROX as an example.

Bottom line:

If you're willing to suffer agreat loss.... then go for it.

Otherwise: It's time to read a few books on  investing & psychology of investing.

Investing For Dummy's

Mutual Funds For Dummy's

Trading In the Zone, Mark Douglas

Mastering The Trade, John Carter

plus as many more books that may help you.

Answer 5

Thats a start but normally to get full diversification benifits there have to be about 20 -25or so stocks in the portfolio.