Why it’s risky to rely only on picking individual stocks
Stocks can go up and down a lot, and one stock can fall a lot even if the market is up.
Using many different investments spreads risk and reduces big losses.
News, hype, or mistakes can mislead you about a stock’s real value.
So, mixing different kinds of investments is safer than just choosing one stock.
Cognitive bias idea
Chosen bias: Recency bias. I once thought a recent great stock would stay high, so I bought more, and it dropped later.
Risk Tolerance
a. Too little risk means slow growth and less money for goals.
b. Too much risk means bigger losses and stress about money.
Remember, Good Investing Is Boring
It means staying steady, not chasing quick wins, and using simple rules. This calm approach helps me stay excited but smart about investing.