It’s hard to argue with the logic that ETFs / low cost funds are probably the best bet for most investors, if not all. But the key point is here - over the long term. While they should absolutely form the backbone of a long term investing portfolio, and it’s important to recognise we’re in a raging bull market, I think it’s also important to acknowledge that this strategy is primarily about the gradual accumulation of wealth. It can be used in conjunction with a strategy that embraces higher risk for higher reward. To make that wealth.

It doesn’t mean that ETFs shouldn’t be at the core of a portfolio, it just means it’s also okay to get involved in more speculative plays, try to swing trade sentiment etc.

They key factors to consider are:

• don’t go all in on risky trades

• do DD. Consider the bear case for every bull case

• make a thesis on the direction of a stock. Consider throughout the “why?”, and be clear on your goals

• set clear price points for taking profits, and for getting into a stock. Don’t buy in at all-time highs unless it supports your thesis for future growth. Don’t “diamond hands” a volatile stock into being worth nothing

• being right too early is the same as being wrong. You face opportunity cost with your money tied up, and you could see a stock bleed further.

• averaging down is a sensible strategy for good stocks, not a way to try and dilute the loss from FOMOing into a speculative stock during an all-time high.

The focus should still be on adding money into ETFs / funds, rather than trying to play the lottery with all of the savings account / pay cheque, but it can absolutely be a solid play to pick individual stocks for the higher risk / higher reward potential. Diversification is also a good way to lessen this risk, together with steering clear of penny stocks.