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I have already set aside $ for my emergency savings.
I have $3000 in a unit trust which is First State Dividend Advantage.
I have $3000 in Syfe Equity 100
What's next? Should I continue DCA-ing in my unit trust or Syfe? I am currently a NSF and I am trying my best to learn from everyone and books.
Am I ready to start stock picking? With simple fundamental analysis, is it enough?
Thank you all.
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Zac
05 Mar 2021
Noob at Idiots Invest
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Bullythebear
05 Mar 2021
Tutor at Self employed
Whether you should stock pick or not depends on temperament. You need to try it to see if you have what it takes. Perhaps a paper portfolio can allow you to test waters safely?
The less knowledge or edge that you have over others, the more you should diversify and the further away from stock picking you should do. By not doing individual stock picks, you lose alpha but you end up having greater protection on your capital.
The question is really whether you are ready to do the hard work and heart work to do fundamental analysis?
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Continue DCA. dun do stock picks. unless u hav a lot of time and hav a flair for business , finance ...
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Investing in fund and Syfe are both reasonable diversified options. If you have the means, continue investing with those.
It's good that you're continuing to learn too - I think the most important thing is to never stop and rest thinking that you've "learnt enough" and you "know everything already".
Stock picking requires effort, time, and knowledge. Investing in general also requires an understanding that sometimes things go well and it may not be due to your right choices and conversely, things often go to sh*t and it may not be your fault.
A simple and useful heuristic I ask myself to see if I'm ready to pick stocks:
Is it worth my time? Will you earn more from studying a stock for 1h compared to working for 1h at your day job?
Net worth. If I can choose all the right stocks, but can't afford the minimum size required to purchase the stock, it kinda defeats the purpose.