The Bulletproof Investment Portfolio
Topics: investing, penny stocks
There are few men who can speak with confidence about their investment portfolios. Besides, out of thousands of stocks which ones are the winners? Thats not an easy question to answer as many investors have discovered. Yes you could just follow the popular stocks but thats not where the real money is. You could just copy your friends portfolios but who is to say they know what theyre doing? Here is an overview of how your portfolio should be structured. Keep in mind that everyone has a different risk tolerance and so you can make adjustments where necessary. We will speak in generic terms here and give percentile ranges instead of exact recommendations. This way you can make your own decision according to your particular situation.
To start with, if you know nothing about investing then you need to take the time to learn first. That or just jump into some mutual funds and have someone manage the allocations for you. There is no reason to take unnecessary risks at this point. It is only an unnecessary risk if you lack the proper knowledge.
Large Caps. Now there are many investing consultant types who will tell you to put a large percentage in large cap stocks. I say, unless you are big on dividends, which can be a nice constancy, you should only put a small portion of your portfolio in large caps. The reason I recommend this is because these stocks have already seen their glory days. They are wonderful companies but the potential for them to double your money is quite small. So I would recommend a 10% to 20% allocation here depending on your long term goals. Looking for slow less risky growth? Then lean on the latter end of that percentile recommendation.
Mid Caps. I believe that mid cap stocks in reality should take the place of the typical large cap recommendations. Why? Because these companies have experienced growth but still have a decent amount of potential to bring great profits. Safe with great potential, sounds like a winner to me. So Im going to recommend a 20% to 30% allocation here depending on your risk tolerance and long term goals.
Small Caps. These companies have huge potential if you follow trustworthy recommendations and stick with them. We are not talking about short holds here. We are talking about finding a super star small cap company and sticking with it until it becomes a large cap stock. I would recommend a 30% to 40% allocation here.
Micro Caps. This is a personal favorite but I am willing to take the risks. Micro caps are often called penny stocks and dont trade on the normal stock exchanges. Keep in mind that penny stocks are only for those with a big tolerance for risk. If you are uncomfortable with losing money then you should steer clear of this investment all together and use this allocation in other parts of your portfolio. There is a big risk of losing money but a huge potential for big gains not found else where. I would recommend a 10% to 25% allocation depending on your risk tolerance and goals.
Scott Johns conducts research and analysis of stock market picks and trends. To check out some of his company’s latest picks go to thequarry.net
Previous Articles Highlighter:
What Is An Installment Loan And How Do You Use One? (1)
These payments are made on a specific time basis and usually are paid back within a fairly short period of time. Installment loans are quite a typical kind of loan and are usually the kind that most consumers obtain to buy big products.
Help Your Students Master Math Worries (2)
That one incident will have been enough to destroy their self-belief that they are smart enough to study math and get a decent grade. As with most things, self-belief is one of the hardest things to build up, one of the easiest things to destroy, and yet it has an ability to control the outcome of our efforts.
How To Ensure A Successful Accounting Software Conversion (3)
Offer to be a reference for prospective clients. And if regional or national user conferences are planned, attend them if you can. Accounting and business management software can be a complex environment.
Blog Marketing: Why You Need To Know About RSS (4)
Blogs are currently the easiest way to generate RSS feeds. By utilizing RSS and your blog you can create another stream of internet marketing to add to your overall online plan.
One Quick And Easy Way To Create Your Own Product (5)
A very easy way to create a product is to do some interviews. Not only is this easy, but it also underlines the fact that you don't have to be an expert in the field you are creating a product for, you just need to be able to find the experts.
How Advertising Can Drive You Traffic? (6)
All in one directory are fast becoming popular and are expected to boost traffic to the site and thus improve an advertiser chance of doing more business. Francis Suggest www.i1ad.com.
The Benefits Of A Direct Consolidation Loan For Students (7)
Now you can say you are well informed and thus make an informed decision when you do consolidate debt loans. Students troubled with their financial debts, Check your options at www.Lingwellness.com and multiple debts payments at: lingplaygames.blogspot.com
Top MLM Best Practices (8)
Here are the best practices that many top mlm leaders are using to successfully build their businesses. Always have a advertising budget whether you are marketing online, offline, or doing a combination of both.
Most Home Based Businesses Are Setup So You Will Fail (9)
In order for you to be successful in the recruiting business you would have to recruit 20 to 50 people a week. You would need to go through hundreds of prospects a week, just to get 20 new signups a week.
Place Your Articles On Websites, Blogs And In Newsletters (10)
Each branch will then represent a new topic on the subject. So you might have a branch about how distribution sites work or a branch about how article distribution helps a new website gain momentum.
Newer Articles Highlighter:
4 Key Factors Concerning Your Future Career In The Stock Market (1)
First off do you think you can speculate with the best of them? We are not talking about uneducated speculation here; it could be called analysis in fact. The art of predicting the future has to be the number one character trait common among those who have been wildly successful in the stock market career path.
Should Your Internet Marketing Blog Be On Their Site Or Your Site? (2)
Not as professional looking as having your own domain. The other disadvantage of blogs hosted by blog sites is that you don't have a lot of control. You can change the formatting of the site according to a few dozen templates you can choose from.
What Is The Best Registry Fix? (3)
It is recommended to use registry repair utility software from reputable companies that offers online support. There are many registry repair tools that can be downloaded online. When you buy a registry cleaner software online, it is important that you order one that has comprehensive features to ensure that a robust cleaning of your registry will be done.
Who, What, And Where You Provide Your Offerings Have Huge Profit Effects (4)
Here are three examples of how to think about this question in terms of the dimensions who, where, and what. Who Is Served and Where Let's first look at "who" is served.
Several Ways And Means To Buy Expired Domain (5)
In fact, a simple search and buy method may not work in the real sense. There are smart entrepreneurs, who use better and quicker methods to grab the domains, before you actually do.
Examination Of Online And Wireless Services (6)
The online and wireless service provider made the decision to deactivate all services on the account, but online and wireless customers withstand the worst because they are held responsible for paying those penalties although they still wanted phone service.
What Must Be In My Accounting Software? (7)
The accounting software must have all the features that you are planning to use. At the very least, the software must have tools for creating invoices, writing checks, tracking expenses, producing customer statements and generating reports and fiscal statements.
How To Stay Fit With An Office Or Computer Job (8)
It's just like D.A.R.E. back in elementary school, except now you're avoiding them because they'll make you fat. Alcohol in particular can be hard to avoid since your friends will want to go out and drink all the time.
The Benefits Of Term Life Insurance (9)
Topics: life insurance, term life insurance, term life insurance benefits, term life When you want a complete and pure life insurance cover for you or your family members then the term life insurance is your best bet.
Acne Medicine - The Optimal Way To Eliminate Acne (10)
Pimples or acne may lead to serious infections and lasting marks on one's face if not treated carefully by the person suffering from this skin problem. One has to be extremely careful while choosing an acne medicine or a cosmetic product to treat pimples.