Building a Smart Growth Portfolio
Editor's note: This is the second of two overall trading philosophies we teach at LearningMarkets.com. The other is Trend-based Trading. We recommend you read the articles in that section before continuing on to the education below.
They are different, and each is suited to different investing types. Many employ a blend of both. Before you decide which is right for you, read all the materials we offer, and make sure you practice paper-trading before you jump in.
Now it's time to put it all together. Once you understand how the market works and what investments are available to you, it's time to start learning how you can create your own portfolio that has the following attributes, which you won't get from an IRA, 401(k), financial planner or investment advisor (unless you're investing millions with them): Diversified within markets: You'll learn to make sure your stock investments are spread across multiple companies, industries and sectors. And it's easy to do once you learn ETFs and Indexes.
Diversified into multiple markets: You won't just be invested in stocks, or even just stocks and bonds. You could potentially add oil, gold, commodities, real estate and others, and it's just as easy as buying a stock when you learn to use the right instruments.
Protected against losses: When your portfolio is properly diversified, you are better protected against loss, as compared to an investor whose money is all in one market, or (sadly it happens often) one single stock. The markets always fall faster than they rise, so smoothing those ups and downs makes sure you don't get killed in the big down-turns.
Growth focused: You won't be building some pie in the sky, get rich quick system that will only leave you broke. You'll build a portfolio that drives for consistent and steady returns over the long-haul. It's not sexy, but it works.
Long-term Growth Building
Be sure to read all these articles. When you're done, you should be able to begin formulating your personal investing mix and blend of investments. Then you may want to review all the articles again, as we do learn by repetition. And you should know enough now to follow all the articles on this site on a daily basis.
| 
