In the last chapter of this book, you learned the importance of finding a name that investment worksheet and how to use it to pick a stock. In this chapter, you will learn about the portfolio of investments. You will need to have a general idea of what stocks you would want to own, but I will give you some examples of how to figure out your portfolio.
I suggest using a penny stock as an example. There are no costs, you can get in and out at the drop of a hat, and if it works, you could make a lot of money. On the other hand, there are risks.
A Dallas trader recently gave up a nice fortune, but he will be forever thankful to share his stock picking knowledge with us. His name is Tim, and he is always willing to help. His newsletter is called Investor Bulletin, and this is what I would tell you about his strategy. This is how his system works.
First, buy as many penny stocks as you can. You will pay for what you buy, so this makes it a good idea to just buy as many as you can afford. Second, put them in several different portfolios.
Third, create separate accounts for each stock, one for your cash and one for your portfolio. Fourth, you must create your brokerage account.
Fifth, you need to think about the way you want to trade. You will need to open a stop loss on each stock, and set a limit on how much money you want to invest in each.
In Dallas, they have already got all the information you need for trading. They have an educational course that covers everything that you need to know about stock picking, trading, etc.
You can find out more about this course and where to get it, at the bottom of this lesson plan. You should take advantage of the course, because it is going to help you get into the stock market for real.