Why trade individual stocks anyway? Cost averaging ETFs is a proven way to building wealth. S&P goes down 20%, you average down, it recovers and you get another 2-3 years of growth. This goes on until civilization collapses.

If you buy ETFs, you basically hold some stocks you don't want.

For example, stock from war profiteering companies (lockheed, raytheon).

Note that investing in war profiteers is a proven way to build wealth. I just don't want to do that.

This argument not only applies to evil companies, but also dumb ones. For example, I have no interest in investing in IBM or Oracle even those both of those are also money makers.

Buying index funds (either mutual funds or ETFs) has been an effective approach for retail investors. But the concern now is that some US stock index funds are so heavily weighted to the "Magnificent 7" stocks that much of the previous benefit of diversification has been lost. The Mag 7 are all highly correlated with each other so if one falls then usually the others do as well.

https://www.fidelity.com/learning-center/smart-money/magnifi...

There are other index funds which are equal weighted rather than market weighted. Those have underperformed lately but might be less volatile if the AI bubble pops.