How To Balance Your Stock Portfolio
Your stock portfolio is a list of stock investment held by an individual or other financial institution. It is an array of different categories of stocks in the list of shares held by an individual or an institutional investor.
Your portfolio as a stock trader is the life blood of your investment career. It shows the direction of your investment journey. Your portfolio should be a mix of stocks that cut across the different kinds of stocks. Your success or failure as a stock trader depends on it. When properly blended can be a great source of joy to you. Before I get to telling you how to balance your stock portfolio, I want to intimate you with a few advantages of having a balance portfolio.
A balanced stock portfolio will always ensure that you make consistent profits from your investments. This is traceable to the fact that your investment cut across the divide of different shades of shares. You make profit per time irrespective of whichever stock is performing in the larger market. With the wisdom of a balanced stock portfolio, you are able to position yourself in such a way that no matter the swings of the economy, of bears with the bulls, and other swings that are associated with the capital market, you are always in step with the market.
A balance stock portfolio reduces your risk as opposed to making looses in the capital market. The point is the slight loss in a particular stock is cushioned by the gains of your interest in another company.
You can almost beat the stress that is associated with a harsh bear session, especially a prolonged bear session. If you have the combination of stocks that are immune to the swings of the economy and stocks that have very strong growth prospect spiced with stocks that earns steady dividends by the reason of strong fundamentals which immunes them from occasional downward swings of profits of the market generally, you are guaranteed profits per time.
To have a balanced portfolio, your stock-list must comprise-
= Stocks that pays steady dividends and/or bonus scrip
= Stock that is immune to changes in the economy
= Stocks that have high growth prospect, i.e. stocks that sell below their real value
= Low priced stocks that have strong fundamentals that encourage profits.
Understanding how to balance your stock portfolio is an invaluable skill that every serious stock trader should take to heart.
Your portfolio as a stock trader is the life blood of your investment career. It shows the direction of your investment journey. Your portfolio should be a mix of stocks that cut across the different kinds of stocks. Your success or failure as a stock trader depends on it. When properly blended can be a great source of joy to you. Before I get to telling you how to balance your stock portfolio, I want to intimate you with a few advantages of having a balance portfolio.
A balanced stock portfolio will always ensure that you make consistent profits from your investments. This is traceable to the fact that your investment cut across the divide of different shades of shares. You make profit per time irrespective of whichever stock is performing in the larger market. With the wisdom of a balanced stock portfolio, you are able to position yourself in such a way that no matter the swings of the economy, of bears with the bulls, and other swings that are associated with the capital market, you are always in step with the market.
A balance stock portfolio reduces your risk as opposed to making looses in the capital market. The point is the slight loss in a particular stock is cushioned by the gains of your interest in another company.
You can almost beat the stress that is associated with a harsh bear session, especially a prolonged bear session. If you have the combination of stocks that are immune to the swings of the economy and stocks that have very strong growth prospect spiced with stocks that earns steady dividends by the reason of strong fundamentals which immunes them from occasional downward swings of profits of the market generally, you are guaranteed profits per time.
To have a balanced portfolio, your stock-list must comprise-
= Stocks that pays steady dividends and/or bonus scrip
= Stock that is immune to changes in the economy
= Stocks that have high growth prospect, i.e. stocks that sell below their real value
= Low priced stocks that have strong fundamentals that encourage profits.
Understanding how to balance your stock portfolio is an invaluable skill that every serious stock trader should take to heart.
posted by John Efetobor - Stock Trading Strategist at
2:13 AM
