The party has just started, are you coming ?
Bullish trend intact.
Covid -19 breed fears and uncertainty . People are fearful. So, they will park some funds into safe haven asset like Gold.
Catching the train at the first station is not the most important as some traders have a mentality of either I am in at the bottom or I am out. They cannot put their ego aside, feeling embarrassed to have missed it. Come on, this happen to all of us, sometimes you are lucky, you got in early , other times you got in late.
Look at it this way, the party will still go on and people will enjoy themselves to the music , food and dance and have a jolly good time, regardless whether you join in or not. So, the decision is yours.
A more important thing to consider is over-diversification. Some traders like to be in all asset all the time but their capital is limited. Then, they are buying in small units thus the gain is also small. But, when there is an abrupt turn of events like this black swan, Covid 19, you may scramble to close your positions and end up losing more money.
Strike a balance. How many is too many ? It really depends on you. Some are comfortable with 10-20 while others prefer 5-8. Also, your timeframe of investment matters too. If you are short term trader, then it really doesn't matter as you would be monitoring your position closely. Those with a mid to longer time frame would park some funds into Gold and leave it untouched till the trend change.
Covid -19 breed fears and uncertainty . People are fearful. So, they will park some funds into safe haven asset like Gold.
Catching the train at the first station is not the most important as some traders have a mentality of either I am in at the bottom or I am out. They cannot put their ego aside, feeling embarrassed to have missed it. Come on, this happen to all of us, sometimes you are lucky, you got in early , other times you got in late.
Look at it this way, the party will still go on and people will enjoy themselves to the music , food and dance and have a jolly good time, regardless whether you join in or not. So, the decision is yours.
A more important thing to consider is over-diversification. Some traders like to be in all asset all the time but their capital is limited. Then, they are buying in small units thus the gain is also small. But, when there is an abrupt turn of events like this black swan, Covid 19, you may scramble to close your positions and end up losing more money.
Strike a balance. How many is too many ? It really depends on you. Some are comfortable with 10-20 while others prefer 5-8. Also, your timeframe of investment matters too. If you are short term trader, then it really doesn't matter as you would be monitoring your position closely. Those with a mid to longer time frame would park some funds into Gold and leave it untouched till the trend change.
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