Do set a reasonable goal.
Very often, I have came across investors who set aggressive goals on the annual or monthly return on investments. A friend of mine set a goal of 3% per month. At this rate, his portfolio would double every two years. However, you must remember that the Bull market do no last forever. If you compare the goal with the result of some of the best investors in history, is the goal realistic…?
Do construct your portfolio with minimum of 10 stocks.
Some of you like to have just 5 to 6 stocks in our portfolio. While there are others who have close to 100 stocks. Although everyone can have their preference but if you have just 5 stocks, you may put yourself into a risky position should the stocks didn’t perform up to expectation.
Do set aside some cash reserves as opportunity funds.