3 Ways to Invest in Meme Stocks Safely | Personal Finance
Of course, these are just two examples. But the point is that meme stocks can be extremely risky, even for seasoned investors.
That said, if you’re interested in owning meme stocks, there are steps you can take to do so safely. Here are a few to employ.
1. Go easy on meme stocks
Generally speaking, the more diverse a portfolio you have, the more protection you have against losses. And so if you’re going to buy meme stocks, you should make sure that they only represent a portion of your portfolio.
You may, for example, decide to put money into meme stocks so that they comprise 15% of your total holdings. If the remaining 85% consists of a mix of ETFs, growth stocks, and well-established dividend stocks, that’s far less risky than putting 50% of your assets into meme stocks and hoping for the best.
2. Avoid other risky investments (at least to some degree)
There’s no such thing as a risk-free investment. But if you’re going to buy meme stocks, then it pays to proceed with caution as far as other risky investments go.
Meme stocks are highly speculative in nature, and so you may want to avoid putting other speculative investments into your portfolio, like penny stocks. Furthermore, while cryptocurrency can be a solid investment, and many people have done well owning crypto, it can also be extremely volatile. And so if you decide to own meme stocks, you may want to limit the extent to which you load up on digital coins.