Originally Posted by bucksfan2
Don't you think the investment advisory community would be better off if they were more brutally honest? In all the books and magazines I read you hear pretty much the same thing over and over again. Diversify your portfolio, make sure all your eggs aren't in the same basket, etc. While I agree with many of those notions, I think you need to have some of your portfolio with speculative stocks. IMO its much easier with the discount brokers because trades cost anywhere from $5-$10 as opposed to $75-$100 with a full service brokerage. You can take a flier on a stock and if it tanks you can move out pretty easily.
There is a ton of money to be made out there, but often times it takes a great deal of risk in order to make money. I am young and for the most part I prefer a dividend portfolio approach but I also put a certain percentage aside for more risky ventures.
The vast majority of people can't pick stocks. Average people trail the market and mutual funds typically by 5-15% depending on the index. I think it is fine for people to have a small portion to trade for themsevles, but speaking broadly and generally much people are better served by the old diversification approach.
That said I really like oneupper's post. I think if you're are young and have some cash there is something to be said for "going for it". It just isn't good investing.