Eight Steps to Build Entity Stock Portfolio
Easy access to investment information and the availability of online transactions make their investors' lives happier and cost less. The Internet has brought "deals" services to millions of families and can now buy and sell stocks, options, warrants, interest rate securities and managed funds from their homes. All you need is a computer and internet connection. In addition, you can conduct your own research on specific companies or fund managers and learn what some stock brokers recommend to their customers. Most of this information is free or at a reasonable cost, and you can save hundreds or even thousands of dollars in fees and commissions per year over the Internet. Rather than through a comprehensive service stock broker or investment advisor, why not try it?
When building your own stock portfolio, here are some pitfalls that you need to avoid!
Although you can find a lot of good information about the stock, you can also find very bad information. Each site claims to have the latest top selection or "top ten" stock to buy, and often they contradict each other. What do you believe, how about scam?
You will no doubt encounter websites and chat rooms that offer investment advice or investment tips, but many of them are not eligible to do so. The information may be wrong or misleading, and some sites even repeat incorrect rumors.
There is overwhelming evidence that you will not get rich by listening to someone else's advice. As an investor, you need the original information, not the advice. You will not buy a car just by looking at it … or you should not buy a company stock without making a major study. If you only rely on newspapers or brokers or Internet chat rooms "tips", there is no need to control your financial situation. Indeed, someone may know more about a particular company or stock than you, but they may be easy to be wrong – so do your own homework!
 You need to make sure you have a reasonable reason to invest in a particular company. Does the company have an instantly recognizable name? Do you understand what the company is doing? Does the company's products or services have a good chance of high demand within the 10, 20 or 30 year time frame? It has a advancing with the times, innovative management team, but firmly control the company's financial situation? Most of this information can be found in the company's annual report, but make sure you read it to the extent of doubt … Most reports are written to promote the company.
In the annual report, the financial statements, balance sheet, income statement and cash flow statement are very important. They are important because they will help you evaluate whether the company offers value for your money. You will buy the stock at a certain price and you will want to make sure you do not pay too much money. Financial figures provide you with a snapshot of the company's financial structure, strength and growth rate. This type of analysis is often referred to as basic analysis, as well as analysis of the economics and industry associated with the company.
Keep in mind that stock holding historical prices and current prices have clues to future prices. In practice, most analysts use basic analysis of short- and long-term buy / sell decisions and use technical analysis to identify decisions.
Internet sites are a great place to collect company information. Naturally, a company owned site will try to portray the company with the most sympathetic lithography. Depending on the severity of your investment, it is recommended that you visit or subscribe to the Investment Research website. Research sites are valuable tools for any investor and provide corporate reviews, general investment information, market updates, stock options, stock ratings, watch lists, portfolio managers, charts, stock indices, communications, alerts and model portfolios.
So how can you build a stock portfolio to maximize your wealth and ensure your peace of mind so that you have complete control over your investment, easy to manage and give satisfaction?
This is a recommended strategy that has worked well for many of its own investors:
1. Subscribe to a respected investment research website that specializes in analyzing financial information for investors. They are independent of the companies they list, do not accept commissions or brokers, rely solely on the investor's subscription income. They must provide quality information to the user in order to maintain the user's confidence.
2. Find the model portfolio they developed and study the methods they use to create and maintain each portfolio.
3. Read the study report for each stock and study the chart provided for price changes and trading volume. Gain a good feeling of long and short-term trends in stocks.
4. Test each investment portfolio during the specified test period, ie one month, one quarter, one year, and so on. Depending on the site, you can set up a portfolio of unlimited portfolio stocks for each model portfolio in a free portfolio manager. Set the start date of the test period, the closing price of the stock you listed on the date in the "buy" model combination. Make sure you include brokers as it is part of the cost base of the stock. The website should keep the latest or 20 minute delay in the stock price so that the balance of the profit / loss of each stock during the specified period can be maintained.
5. Compare the published results for each portfolio with the results you achieved in your portfolio manager. They should agree with each other when they compare the same stock in the same period. Your test should have some confidence in the model combination.
  
You can use the stock price history for the past three months to perform this operation or perform a trial evaluation of the future price for the next three months. You can use one of the existing model portfolios, or create your own portfolio from the selected stock.
7. Subscribe to the online stockbroker's website and start trading.
8. Monitor the stock every day and review your actual portfolio performance based on the model quarter.
You should be careful to evaluate the method used by the research site development model portfolio. These portfolios are designed by research firms to provide sensitive mid-term portfolios that allow investors and financial planners to easily replicate. You need to understand the research method and be confident in it, rather than blindly accept the results of each portfolio. You do not need to be a method expert.
Building a stock portfolio that meets your investment goals will significantly increase your wealth over a period of time. You can also save commissions and costs, feel at ease, have complete control over your investment, and get real satisfaction.
As the last sentence warns … In addition to death and taxes, there is nothing in this world that is certain. This also applies to the stock market. Ready for some ups and downs, ready to sell the stock to reduce losses. If the core of your portfolio is made up of stocks with strong capital growth and reasonable dividends, you will do a good job as a whole. Have "in it" and good investment!