DIVERSIFY YOUR PORTFOLIO

The idea behind diversification is that a variety of investments which can potentially lead to a higher return. It also suggests that investors will face lower risk by investing in different vehicles. Here are some tips to know before diversifying your portfolio:

Spread the Wealth - Do not put all your money into just one stock or sector!

Don't fall into the trap - Make sure you keep yourself to a portfolio that's manageable. There's no sense in investing in 100 different stocks when you really don't have the time or resources to keep up!

Dollar cost averaging - With dollar-cost averaging, you invest money on a regular basis into a specified portfolio of securities. Using this strategy, you'll buy more shares when prices are low, and fewer when prices are high.

Keep Tabs - Stay current with your investment and the constant changes. You'll be able to tell when it's time to cut your losses, sell and move on to your next investment.

Be Aware of Fees - Some firms have monthly or transactional fees, make sure you look into them before investing!