Table of Contents Toggle Why Diversification Matters1. Risk Reduction2. Smooth Out Volatility3. Improved Long-Term ReturnsStep-by-Step Guide to Building a Diversified Stock Portfolio1. Define Your Investment Goals2. Decide on the Number of Stocks to Own3. Invest in Different Sectors4. Balance Between Growth and Value Stocks5. Incorporate International Stocks6. Consider Exchange-Traded Funds (ETFs) and Index Funds7. Monitor