First mistake in the stock market How did my journey to finan | Investor Writer

First mistake in the stock market

How did my journey to financial freedom begin? Initially, the idea was to buy 50 per cent stocks and 50 per cent bonds in a brokerage account for a test amount. Then I had to see how the securities would behave, how much I could earn in dividends and coupons and whether it was worth continuing.

Of course I promised to buy only good quality securities from reliable issuers and only after careful analysis.

But as I immersed myself in the market, my appetite and excitement grew. Advice from analysts was pouring in from everywhere. And there turned out to be so many interesting issuers around! I wanted to see them all in my portfolio. Why? Diversification is not a bad thing, I thought.

And before I knew it, I had passed the limit of the amount allocated for investment. It doubled, then tripled, then moved even more money from the bank deposit where my financial cushion was deposited, and into securities.

I found out that shares in my portfolio already accounted for more than 70 percent. And not only first-tier companies were represented, but also more risky ideas from the second and third tiers.