Stock Portfolio - Eight Vital Steps To Build A Great Stock Portfolio

A good stock portfolio is much easier to build today because of the wealth of investment information available on the Internet and the ready availability of online stockbrokers. The Internet has made it possible for you to have a trading desk in your own home, it is possible to deal in a wide range of securities stocks, options, warrants and currencies, all by using your own computer at home.

How ever you do need to be careful while there is a mass of good information available there is also a mass of poor information out there also, it is important to carefully vet any website you us to provide stock investing advice.

The internet is a great place to collect information about companies you may be planning to invest in, if you are serious about building a stock portfolio here are eight vital steps you should take to build a well structured personal stock portfolio.

1. Subscribe to a least one recommended financial website which specializes in analyzing company financial information. These websites are independent they do not receive any payment from the companies whose information they list, they earned their income from the subscription that you pay. I know no one likes paying for information on the web, when it seems there is so much freely available but when it comes to investment advice you get what you pay for!

2. Check out the specimen or model portfolios that these websites have listed and investigate the thinking they have used in creating these portfolios.

3. Study the report’s that are provided about each company’s stock, the graphs that are provided are particularly useful and will enable you to clearly see how the stock has performed.

4. Monitor each of the specimen portfolios over a period of time say three to six months, it should be possible to paper trade the stocks in the portfolio to give yourself hands-on experience of investing without risking any of your capital.

5. Compare how the published results for each of the specimen portfolios compared to your own results from the paper trading, if the results are very close this will give you confidence when you start investing your own money.

6. Having paper traded for some time you will hopefully have identified the specimen portfolio that most closely matches your requirements or alternatively you will developed the knowledge to enable you to modify the portfolio to exactly suit your needs.

7. Now that you are ready to take the first real steps in to building a live portfolio you need to subscribe to an online stockbroker.

8. It is best to monitor your stocks on a daily basis and compare the performance of your live portfolio against the model portfolio you used for your research.

By building a share portfolio in this way you will have an investment strategy that meets your objectives and will enable you to build real wealth over the medium to long term.

It is true to say you will never become rich just by listening to the advice of others by following the above advice you have taken a significant step towards your financial independence.

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