So under what circumstances should you invest in individual stocks and ETFs? ETFs are a diversified basket of stocks that miminizes the effects of unexpected losses from any individual stock or bonds in a portfolio. ETFs are just like stock indexes and not actively managed. ETFs are always managed by a professional manager who will always have quicker access to information as compared to you.
http://www.ninjatraderblog.com/
However, there is always an argument by investors who manage their own portfolios that individual stocks may give a better rate of return as compared to ETFs or for that matter mutual funds. If you have a smaller amount of money, something like $2,000, in that case ETFs and mutual funds are a better option for you. A $2,000 investment in an ETF gives you a fraction of a diversified portfolio of stocks. If you want to buy stocks with this amount, you might only end up buying shares of one company.
So investing in ETFs is a better options if you do not have enough money, time, expertize and inclination to select individual stocks. If you are really serious about learn the art of stock investing than you need to take a look at Chris Rowe's Internal Strength System. This is a complete self study home course that makes learning stock investing as easy as watching movie. Chris Rowe is a master options trader who had used this exact investing system to make millions in stock and options trading while still in his 20s. This course is the complete A-Z of stock trading!
http://www.ninjatraderblog.com/
