How to Create Your Own Stock Portfolio

How to Create Your Own Profitable Stock Portfolio

The basic step to make your own stock portfolio is very simple and that is that you go to a good finance site and then create your own portfolio. These sites will be Yahoo Finance or Google Finance. However, the best way will be to create the stock portfolio with stock broker or online brokerage firms like Zerodha or AngelBroking. The reason is that then you need not enter the buy and sell trades yourself as these will be automatically added once the trade is executed.

First Step
The first step you will need is the set of stocks that you need to track and also their symbols. Most of the time you will get the symbol lookup thing on the portfolio creation page itself and once you have selected the stocks then you can log in every day and see what kind of percentage return you are making based on your buy price. Against each stock entry, you will see a Buy and sell button so that easily make decisions to buy and sell from the portfolio itself.

Second Step
Now the major thing is not how to create your own stock portfolio but rather how to make sure that you have the best-diversified stock portfolio.

You can read about building a good stock portfolio in my earlier post but here are the major points and these are
1) Never put your eggs in one basket i.e. do not have only one stock.
2) Have about 15 or more stocks.
3) Buys stocks across various industries like consumer durables, technology, transportation etc
4) Buy stocks which are defensive, low risk, medium risk and some speculative
5) Buy large-cap, mid-cap and small-cap.

You can follow the Portfolio of Top Investors in Indian Share Market

1) Rakesh Jhunjhunwala portfolio

2) Vijay Kedia portfolio

3) Dolly Khanna portfolio

4) Rediff Money portfolio

5) Porinju Veliyath portfolio

6) Warren Buffett portfolio

7) Berkshire Hathaway portfolio

Things To be aware of
Again building your portfolio will take time and immense patience as in some cases you will see some losses but that is fine as long as you have a portfolio that can easily absorb the losses and you have a cushion against those with a well diversified list of stocks.
Three golden rules
1) Do not time the market
2) Buy low and sell high
3) Be patient