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Tips to Make Your Stock Portfolio Grow Faster and More Effectively

Strategies I use to make my investment portfolio grow faster and more effectively.

By Casimiro Filipe Published 3 years ago 7 min read
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Tips to Make Your Stock Portfolio Grow Faster and More Effectively
Photo by M. B. M. on Unsplash

Most people who want to start investing in the stock market through the stock market, their biggest concern is because stocks take too long to give a return on profit and dividends on their investment. What if you could change this paradigm that most instructors teach and have caused a range of investors to give up and lose unnecessary capital?

Something that those who want to start in the stock market need to know is that investing in stocks is for people who are patient and want to build an investment portfolio that gives a passive income in the long or short term, but in most cases, for the long term. But most beginner investors have no patience.

If you are one of the people who always wanted to start investing in the stock market, but always feared for the falls and oscillations of the stock market and especially with the time of collecting profits. I want to advise you to stay calm. Drink some water, sit down and the soap opera will start and it will be a lot of fun.

I'm an investor of the stock market, I'm diversifying my portfolios in three brokers and my experience has never been so great. And I want to share my experience and strategies that I have been using to make my portfolios grow faster and more effectively.

Overcoming Fear of the Stock Exchange

If you intend to start investing in the stock market, overcome the fear that many unaware of the matter put in the minds of those who wish to start investing in the stock market. Because in reality the stock market is volatile and to start investing in it, you need to have the minimum of knowledge not to make mistakes. However, some advisors wrongly send the news to the beginner and give up for fear of losing in the stock market.

Before starting a project, you need to be upright in your head and never doubt yourself, be firm and convinced. Pay close attention to the advice you will receive when you ask for an opinion on the creation of the project. Because problems happen everywhere and dangers exist, but if we go in with our heads down suspecting that the worst can happen, we will remain insecure.

Enter with everything in the investments

Entering with everything does not mean investing all the capital you have. It means that you must enter with confidence and make your confidence worthwhile.

One of the first things I questioned myself before buying my first stock was how I would deal after being inside the brokerage house. And my main focus was not to invest in CFDs, and even if I did invest in CFDs, I kept the X1 leverage to predict declines.

Keeping track of the situation between market swings is very important. You can't be an investor if you don't have time to pay attention to the market. This is one of the great strategies I use to keep the portfolio alive and always green.

Maintaining control of the portfolio allows you to know how an asset is progressing. And this is where I want to show you the most important part of that story.

How do I make my stock portfolio grow faster and more effectively?

I use a method that I learned from Warren Buffet. "Don't remain an open position for stocks that appreciate quickly."

How does this work?

For example, Tesla stocks grow so fast and also decline so fast. There is a group of investors even saying that Tesla stock can be a bubble, something I don't agree with. Some compare the growth of Tesla shares with the growth of Bitcoin.

Shares like Tesla shares, help your portfolio grow much faster than you could imagine.

In what way?

When buying a stock or part of it, don't be like some investors who expect a long term until it values itself and comes to grow a lot and have a profit in the future. This way you will be depriving your portfolio to grow. When you buy the stock, never buy it in a moment of valorization, even if it has only 0,20% of valorization, dwarf it is a stock with a price inferior to $50. Otherwise, don't buy stocks in valorization, only devalued, stocks that oscillate and go back a little in price. As soon as they start to stabilize the price, because of the devaluation, you will already have a valuation in your portfolio, and if this stock values a little more, it doubles the percentage of the valuation and the portfolio already gets a value beyond the invested capital. The recommended thing at this moment is to close the position and collect the profit from the valorization of the stock along with the invested value.

You will already have in your portfolio balance, the value of the portfolio plus the profit of the stock appreciation. While you wait for the same stock to oscillate a little and have the percentage of red color, look for another stock in devaluation and buy it. When the price stabilizes, you'll see the same procedure of the past stock, you'll continue doing the same strategy both for stocks, ETFs, and Crypto. This will help your portfolio develop faster and you won't need to depend on the long term or dividends paid at the end of each year.

And if there is a drop in the stock purchased, what do I do?

Stay calm. This is where you must overcome your fears. Every stock has declined, it depends on several factors and it can't stop you from following the dinte. In the stock market, there are three factors that investors use to deal with problems.

1 - Investors recommend to those who don't have the stocks, to buy the falling stocks

2 - Investors ask those who bought the stocks that are in the fall, to maintain and not take action.

3 - Investors recommend selling the stocks that are falling, to avoid the worst.

These three factors are very important in the life of an investor. But let's tell him to be very careful with these three factors because investors and analysts also make mistakes. I repeat, investors and specialists, also make mistakes.

Let me give you an example of what is happening with the actions of GameStop and BlackBerry.

1st Actions of GameStop

When GameStop shares were worth $8.65, experts and investors predicted a price increase of up to at least $16.00 and a price drop of up to $1.60. With these estimates, 0% of experts and investors recommended comparing the GameStop shares, 50% of experts and investors recommended to those who had already bought to keep them and wait in case the price of the shares reached up to $16.00. And 50% of the experts and investors recommended to those who had bought the shares, to sell them before they fell to the price of $1.60.

Two days later the shares of GameStop would rise to $78.43, and by the time I write this story, the shares of GameStop are already around $273.58.

Screeshot by the author

Screenshot by the author

Screenshot by the author

2nd Stocks of blackberry

When BlakBarry shares were worth $14, renowned experts and investors predicted a devaluation of up to $7.50. With these predictions, 0% of the specialists and investors recommended its purchase, 50% of the specialists and investors, recommended to those who had already bought to maintain them and wait in case the price of the stocks arrived to value. And 50% of the specialists and investors, recommended to those who had bought the stocks, to sell them before they fell until the price of $7.50.

At the moment I wrote this story, BlackBarry stocks are at $25.10.

Screenshot by author

"Renowned experts and investors also make mistakes."

That's why keeping calm and overcoming fears should be important keys for an investor or any individual who wants to start a business and leverage that business. Not always the intuition of experts works and often they make us make serious mistakes. I'm not dismissing the experts, far from it. We should only sometimes be convinced to analyze our own trends. And I always do that, I always analyze the market trends through the charts and this is a part that you must be strong enough to grow as an investor.

Most of my portfolios, I don't feed them with capital, since the first deposited value, they are sustained with profits acquired from stock valuations and crypto-currencies by which I invest and close the positions whenever they value. I don't expect them to appreciate much. An $8 valuation for me is enough to close the position and open another one of some stock that is devalued.

These are the strategies that I use and in all my time as an investor, I haven't lost any penny even though I haven't escaped from the portfolio getting red, but that doesn't mean anything, because every portfolio has moments that everything gets negative.

investing
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About the Creator

Casimiro Filipe

Startup Entrepreneur, Investor, Content Writer, YouTube Business Influencer and Podcaster.

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  • Irineu Timóteo9 months ago

    I love it

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