DIVERSIFICATION

Diversification

All the word means is “Don’t put all of your eggs in one basket “, and it is a great piece of advice and here is why...

<a href="https://www.activesearchresults.com/"><img src="https://www.activesearchresults.com/images/asrbutton.png" alt="Active Search Results" width="88" height="31" border="0" /></a>

If you put all of your money into one stock option you can take significant losses in one day if the markets are off for some reason. However if you have multiple holdings in different sectors it gives your total portfolio value a nice buffer. If you have 5 or 10 good stocks some will likely go up on days that the majority of your holdings are taking hits.

Not only do you want to own multiple holdings but you should invest into the different market sectors i.e. food sector, tech industries, auto makers, fashion, and so on. The reason for this is probably a no brainer to most of you but for the beginners the reason is that on particular days a certain market sector can take a hit for various reasons when the other sectors could be out performing on that same day.

GET YOUR FREE SHARE OF STOCK HOLDINGS HERE JUST FOR DOWNLOADING THE APP FOR FREE, SIGNUP FOR FREE WITH NO INITIAL OR RECURRING FEES, THEN LINK A FUNDING SOURCE. THIS IS NEEDED TO TRANSFER YOUR MONEY INTO ONCE YOU SELL HOLDINGS, IT IS ALSO NEEDED TO FUND YOUR ROBINHOOD ACCOUNT SHOULD YOU DECIDE TO PURCHASE ADDITIONAL STOCK HOLDINGS

HAPPY EARNING