Direct equity shares on paper offer the best returns. But seem a lot riskier than simply buying an ETF/Trust. Whereas an Index like SP500 will eventually recover will your 10-20 blue chips picks (Enron, Nokia etc)?
My question is to anyone that's experienced in self managing their own equity portfolio that's mirrored maybe an Index;
How do you pick your 10-20 blue chips? Just copy an existing ETF or simply buy the top 20 of an index you're tracking?
Is there an easy tool that can help you create a diverse portfolio for your age group or just buy the pie of VWCE on a brokerage like IBKR?
How do you manage your portfolio, how often do you rebalance, when it drops out of the top 20?
When do you sell, when it drops 30% or hope for an recovery; Nike, Intel etc?
Overall I'm looking for some insight from any experienced practitioners of an over 80% self directed equity portfolio - what are the tools, pitfalls, wins, best advice you would have for anyone looking to make a portfolio vs going the easier ETF/Trust route or maybe you'd totally advise against it!
Thank you for any responses.