No, Index funds generally tend to be less volatile than most individual stocks, so i believe indices are safer than individual stocks.
Yes but now I am beginning to think that if they move so little how would one find profit-making opportunities.
So you want to find something that moves a lot but with low risk? Keep searching, you never know you will find it. Did you ever hear about "leverage"? Because leverage can change the profits... but also the risk. Check the "expectancy" of your system. That might give the best option.
Stocks can be a good option for your portfolio but I think ETFs can be a better option. It will help you basically diversify the pool of the securities which you are investing. Through this method your portfolio will have a diverse range of stocks without individually buying different stocks.
@botsmarok Never go down the path of investing in leveraged securities without understanding the risks. It is not meant for holding long term because no doubt they can bring good profit, but the risk is huge. I have also made the same mistake and lost almost the entire capital. Indices however are relatively low risk as compared to the leveraged stocks. When I suffered in the hands of leverage, I had gone back to the drawing board and started investing indices through Fxview because they have relaxed margin requirements. Though the temptation of investing in ETFs was still there so I started day trading leveraged ETFs through XTB but now I am more careful.
Hahaha I am on mission impossible, and I wouldn’t trust my trading system. It’s completely different on live than what it shows on my demo account. Speaking of leverage, oh man, I lost all my money with currency trading cause of it. Not saying that I will not use leverage, but it got to be low. PS: Am I sounding too confused here? Actually I already know I am aaarrrggghhh
Which investment is ideal buddy and I’m speaking of index funds here. A portfolio that increases with index also falls with it.
Yep and that’s the reason I’m kind of satisfied with forex. Not very adventurous here but I’m happy that the brokers I trade with like octafx and fxview will sense the change in the market trend and adjust the positions to buffer the liquidity.