If I had not sold some of my stock portfolio last year I would be a richer man today. With so many projects on the go I need a little funding and I decided to sell my stocks. This was a mistake because had I held the stocks for another year they all doubled in value. The actual value of the stocks sold would have been much more then the profit I made on the project I was working on.

As an entrepreneur I took a chance on an idea and it failed. That is the cost of doing business sometimes you lose money, but you also walk away with a valuable lesson. As I rebuild my stock portfolio I am going to diversify into a portfolio of five stocks. The risk will be spread and the chances for growth in my favour. As I watch the portfolio grow in value I will not be tempted to sell. If I need the money I will pretend that the stock portfolio does not exist. Only with total commitment to my stocks will I see them grow in value. There will be stocks in the portfolio that I will sell when I have a chance at profit, but I will use the profit to invest in more stock. If I follow this method I should grow my portfolio and over time build wealth. The other factor I use when I buy stocks is to make sure the company pays a dividend. While my stocks wait to grow in value I might as well have some passive income to reinvest and keep growing. An education on stocks is also a must as I build my portfolio I am also trying to learn as much as possible.

Every little tip helps and by reading and watching business shows I will find the right mix to invest my hard earned cash. There are not too many methods that can make you truly rich, but the stock market played the right way can build wealth with time. It worth having some money invested in stocks and to be balanced have an equal amount in cash for those emergencies that life throws once in awhile. The lesson learned from my mistake last year was not to use my investment income for other purposes. Had I just kept the stock it would have worked out much better for me.