How Many Stocks to Buy - Portfolio Management

It is next to impossible to keep track of a large number of stocks. Hence it is advised to keep track of few selected and well researched stocks and focus on these stocks.

How to Select the Best Stocks to Buy

I have already explained in my previous tutorials how to do study and research to select the best stocks to buy. Below are some more tips to help you select the best stocks:
Portfolio Management
  1. If a company is coming up with a dynamic new product or services and the product or services has great demand then the stock can be very active. Focus of these stocks.
  2. Focus on top performing sectors and buy shares of top performing stocks. Don't buy stocks that look cheap. Remember, it is quality that matters and not the quantity.
  3. Keep track on well performing mutual funds and see where are they are investing.
  4. Keep an eye on outstanding stocks and stocks that make new highs and volume. Look for opportunities when these stocks break their high prices and then buy these stocks.
  5. Understand market trends and then select your stocks.
  6. Sudden or unusual price fluctuation is not any signal to buy. Don't buy blindly on market dips. Use your brain and do research before buying any stock.
 How Many Stocks Should I Add To My Portfolio

    Budget ($)

    Number of Stocks to Buy
    < 20,000 1 to 2 stocks
    20,000 to
    2 to 3 stocks
    50,000 to 200,000 3 to 5 stocks
    200,000 to
    5 to 7 stocks
    > 500,000 7 to 10 stocks

Resources & References: