So always take note of your stock portfolio and here are some guidelines to help you along:
- This one is straightforward but some beginners neglect to do this - Keep records of all your investment decisions. If you don't keep track, you won't know how much you're making or losing!
- A portfolio of 5-8 stocks is optimum for the typical investor . Keep within a certain number so your portfolio remains manageable. Too many stocks could result in a lack of proper management and cause losses in your portfolio
- Monitor a company's' quarterly reports and keep track of their fundamental performance
- On top of monitoring your stock through financial reports, you should attend the Annual General Meetings (AGMs) to meet a company's management team face-to-face
- Stay current with world and economic affairs and monitor any news on your stocks and the industry they're in
Because let me ask you...
Would you be happy with a 22% dividend yield year after year? That means for every $100 you invested, you're getting $22 back in passive income every year. You don't even have to do anything to make that money; you just sit and wait!
Well, that's what value investing can do for you when you hold on to a winner long enough. Read this article below and it'll show you how: