Build a portfolio

A trading portfolio contains different investment assets. Usually traders create a portfolio to diversify trading risk. An investor/ trader can own different trading portfolios, each addressed and leaded by different strategies and future goals. A trading portfolio might contain stocks, currencies, cryptocurrencies and much more.

Trading vs. Buy-and-Hold

Traders are kind of people who do not like to wait long for the investment return. They have a very active approach towards investing their capital. They do not like, investing and sitting back to wait for the right moment of the next move. They work on their money fast, in a matter of days, minutes or moment.

 

A trading portfolio contains different investment assets. Usually traders create a portfolio to diversify trading risk. An investor/ trader can own different trading portfolios, each addressed and leaded by different strategies and future goals. A trading portfolio might contain stocks, currencies, cryptocurrencies and much more.

Trading vs. Buy-and-Hold

Traders are kind of people who do not like to wait long for the investment return. They have a very active approach towards investing their capital. They do not like, investing and sitting back to wait for the right moment of the next move. They work on their money fast, in a matter of days, minutes or moment.

Money Management

There was a tradition in the past, when certain people used to manage the portfolio of traders. Nowadays, traders manage their portfolio themselves. High-net worth individuals typically still utilize a money manager.

Building an Investment Portfolio: Risk Tolerance

Risk is the possibility that your investment on a particular asset will not perform well, which will cause you a lost in your capital. Risk will be present each time you invest. This is why traders are continuously advised to not invest more than what they can afford to lose.

The risk tolerance is what part of the risk you can handle with your investment. It reflects how well you can manage the ups and downs of the market reflected to the reduction of your profits or your available capital. This is called by traders’ volatility, market volatility.
If you can’t afford to lose the capital you are investing, it means that you have low risk tolerance. In this case, if the market collapse suddenly, your investment will be shake to the core.

On the other side, if someone is not in a rush to have his money back in 40 years, he is able to afford the volatility better. This kind of investors has time to wait for the right, to decrease the value of their investment, to adapt with market changes and recover bad moments with good ones.

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