5. Find the Right Path

Your level of knowledge, personality and resources should determine the path that you choose. Generally, investors adopt one of the following strategies: 'Don't put all of your eggs in one basket. In other words, diversify.Put all of your eggs in one basket', but watch your basket carefully.Combine both of these strategies by making tactical bets on a core passive portfolio.Most successful investors start with low-risk diversified portfolios and gradually learn by doing. As investors gain greater knowledge over time, they become better suited to taking a more active stance in their portfolios.