Stay diversified (1/14)

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Ideally, you would own 5 or more stocks that are not correlated with each other. I.e. don’t buy 5 tech stocks. Buy 1 tech, 1 financial, 1 health care, 1 services, and 1 basic materials. This kind of sector diversification will protect you in case 1 sector goes out of favor.

Contributor: Mike Scanlin, CEO of borntosell.com 

Written by Nathaniel Fried

Co-founder of Fupping. Busy churning out content and building an empire.

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