How diversified should a new investor's portfolio be? Diversification in a portfolio refers to the number of stocks being held at any given time. The basic mentality is that the more stocks an investor owns, the less risk they realize overall. This can hurt new investors though that are just getting started.
A very common mistake by investors new and old is the tendency to celebrate profits before they are realized. This recipe for disaster can be a very difficult lesson to learn but once this additional piece of discipline is set into place traders can thrive to new heights. Removing emotion is critical to successful investing.
I am starting a new series for the blog on simple but extremely effective stock trading tips for new and intermediate experience traders. I will add a tip every few days and eventually will create an archive of all tips just like the stock education page. Most investors never consider selling half their stock positions [...]