"You should have $10,000 in index funds before picking individual stocks"
if you are not, i think that you should be in index funds as well
The reason for waiting until you accumulate a certain amount of capital before investing in single stocks is that you are likely to put too much into one or two investments, and if you guess wrong, you blow the greater portion of your portfolio. The specific number is of little relevance; it is important to diversify. That is one of the greater merits to index funds; they are by nature diversified (depending on the index picked.)
What is of more importance here is, how much experience you have, and how much time and energy you have to put into this effort. It is far better to use index funds than to not invest at all, but I have always preferred to construct my own balanced portfolio rather than leave that to others.
I have started to take distributions from my traditional IRA and doing a conversion into my Roth IRA which I have at Zacks and it is managed into a wide range of ETFs and their fees are miniscule. I just check in from time to time to see whats going on. You kinda get a feel for their investment advice month to month. Just started so it remains to be seen how they do.
Any statement in this business regarding strategy that is said with certainty can easily be shown to be false. But if you view it with a narrow enough lens, it can seem true.
Playing the market and flipping a coin have stunning statistical parallels, the biggest difference being how much you gain or lose is not a binary event. You can never know the future, you can only learn what happened, and why, and apply those lessons going forward.
Never stop learning, never take anything at face value, and make your own decisions.
What about when he recommended Bear Sterns? :)
If someone isn't willing to learn the hard way, trading probably isn't for them. The small accounts that you blow out is your trading tuition.