An Efficient Portfolio

• 1). Research stocks that you would like to invest in. Six companies will be a good start to diversification. Look at stocks in various sectors like technology, healthcare and energy. Make sure these companies have good management, financial stability, and possibly offer a dividend. A dividend can provide extra income or offset a slight drop in the stock's price--that's efficient.
  
  
• 2). Pick six stocks from the companies you researched, because this will ensure your sole investment in not in one or two stocks, which will increase more risk. Create a balanced portfolio from these stocks.
  
  
• 3). Log onto your online investment account, such as ShareBuilder. Online accounts are helpful, because they offer low account minimums (ShareBuilder has no minimum), and commissions are heavily discounted. This will help in the long-run. High commissions and fees will eat into potential profits.
  
  
• 4). Invest in the companies you picked. This is done by entering the company's ticker symbol and clicking the "trade" button. Remember once a trade is confirmed it is final.
  
  
• 5). Watch your portfolio every day to two days. This keeps you up-to-date in how your portfolio is performing.