Don't Know How Many Stock Shares to Buy? Use the 25 Shares Strategy

Here's a new investment strategy that incorporates less risk and allows you to limp into your respective stock positions.

Quick Background

When I buy round lots (100 shares per purchase), sometimes I would get burned by wild swings in the market, especially during key sector selloffs. If you're terrible at controlling your emotions (like myself at times), then buying large stock positions at once is hazardous to your heath, literally.

The Strategy

A lower risk strategy is to buy 25 shares of stock at a time, then 25 shares then 25 shares and so on.

Why It Works

This strategy works well for several reasons:

  1. Reduces the amount of risk up front and lets you benefit from dips in stock prices, creating buying opportunities.
  2. Turns your trading commissions into “insurance premiums” so you can wait on the sidelines until you buy again
  3. Costs a lot less to open position in rather pricey stocks.
  4. Allows risk-adverse investors to invest for less.

Final Thoughts

I'm sure there are many more advantages, but those are the big ones. Whether you're a seasoned investor or a newbie, starting with less shares gives you more control over your future moves, protects more cash from losses, and may be that key ingredient to your blossoming investment strategy.

Best Free Stock Promotions

2 Free Stocks (Up to $1,850)Open Account
$50 Free in Stock of Your Choice ($1,000 deposit)Open Account
3 Free Stocks (Up to $600)Open Account

Recommended Offers

  • Free $10 Bitcoin - Get $10 in bitcoin for free when you sign up for Coinbase and deposit $100
  • 4 FREE Stocks - Get 4 free stocks when you open a Webull account and deposit $100
  • Private Discord Chat - Join now to talk more about stocks, ETFs, crypto, sports cards, and other investment ideas!

Related Articles

Leave a Comment