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https://www.mql5.com/en/blogs/post/657889
The diversification of the portfolio of the most difficult tasks that an investor may face what. When the market is in a boom, it seems impossible to sell the stock at a lower price than the purchase price, and this applies to indicators also when they are on an upward trend Lack of ownership may be a big mistake at the time, and because of the lack of the ability to know the direction of the market at any time, the optimal solution in this case it is to diversify the portfolio.
When it comes to investing often traders are advised to diversify portfolio is intended to diversify the types of investments here. Diversifying the portfolio protects you from losing all your assets in case the market was going through difficult times or in recession and the sharp drop in stock prices in recent years, but not enough evidence of the seriousness of the concentration of assets in a particular investment. But in order to properly diversify the investor must know what kind of investments the purchase, the amount of money that must be invested, and how diversification within a particular investment category. Asset allocation and of great importance to the significant impact on whether the investor will achieve its financial target. If your investment was not associated with a certain degree of risk, it is likely that do not achieve the desired goal of the proceeds. Asset allocation and of great importance to the significant impact on whether the investor will achieve its financial target, if your investment was not associated with a certain degree of risk is likely to not achieve the desired goal of the proceeds.
Of the main points that must be taken into account when the desire for diversification is to focus on diversification and not on quantity. Vamtlakk a lot of investments does not mean that you have to diversify your portfolio, but you need to have different types of investments. For example: If you are a forex trader you can own different pairs of currencies, the difference in the investment contracts or in gold or silver and other even in stocks, bonds and real estate funds market.
The goal of diversification is not a performance-enhancing it is a kind of guarantee against losses. Once you choose to target a specific risk level based on your goals, your time .. diversification may provide the ability to improve the revenue for this level of risk. To build a diversified portfolio as an investor you should consider the various assets that returns historically have not moved in the same direction and to the assets that usually move their returns in opposite directions. Even if it's part of your portfolio in a decrease in the remaining part thereof remains on the rise, this way compensate for losses associated weak assets.
Other important aspects of building a diversified portfolio that is trying to diversify an investor in each type of investment. If you want to invest in stocks, you must diversification in investment in. It is desirable that the stock does not constitute more than 5% of your stock portfolio, and this also applies to other investments, whether real estate or bonds or other ...
In spite of that diversification is possible that protects you from devastating losses it causes to the average annual revenue losses, because the risks and rewards are linked to a large extent in the financial markets. Therefore, anything that reduces the risk to your will also reduce your revenue. So if taking a small percentage of risk is the perfect solution in this case was special to have a small income from money.
