Chapter 4: Building Your $100,000 Portfolio

Now that you have made your first trade, it’s time to build your portfolio. Building a stock portfolio is easy—but building a successful portfolio is a challenging task that everyone struggles with, even for the professionals on Wall Street. New investors are often overwhelmed by the over 20,000 stocks that trade on the U.S. exchanges. Keep reading and we will help you navigate the many opportunities, risksThe expected variance of the returns of your investments, timing issues, and other uncertainties that every investor faces.
The concepts covered in this lesson will help you gain confidence, make better decisions, and achieve success. Keep in mind that building a successful portfolio is part art and part science. The art is in market and stock timing as discussed in earlier chapters. The science is in maximizing your returns, minimizing your losses, and managing to do both with minimal risk. This chapter introduces the key concepts this delicate balance of risk and returns.