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Lesson 1. Confronting Your Fear of Stocks > It Will Take Too Much Time - Pg. 8

Confronting Your Fear of Stocks 8 It Will Take Too Much Time Initializing and subsequently diversifying your portfolio should never take up an inordinate amount of your time. Even as you expand your portfolio and begin to include other financial instruments, a process known as diversification, the initial purchase of stock will be your decision. Should you decide to spend hours researching, you are perfectly free to do so. Or, you might ask a friend to give you advice. You decide to purchase the stock for whatever reason you consider important. Research is never required. A portfolio is a collective term for all your investments. It should consist of cash as well as different kinds of investments, such as stocks and bonds. Determining how much of each you want is a process known as diversification. After purchasing the stock, even monitoring its performance is optional. Should you decide you want to know the stock's performance for the day, through the use of several methods described in this book, you will be able to uncover any information in a matter of seconds. But most important, you still control the amount of time you allot to monitoring your stock's performance. Monitoring your investments is also not required. So the total time commitment is solely your decision. That doesn't mean you shouldn't take the time to learn anything. You obviously have some interest in the stock market, or you wouldn't want to invest in it. As with other areas that catch your attention, you should take some time to learn more and to become increasingly familiar with the market. What inevitably happens is you start to become interested. Once you've learned how stocks work, you start to wonder how bonds work. In addition to stocks you already own, you begin to check the daily performance of stocks that you are considering purchasing. After learning the business of one Plain English