Monday, May 27, 2013

Investment Portfolio

Following notes to set up a system in order rebalance and better manage our portfolio.
Investment Portfolio

Trading means moving in and out of positions over a short period of time, sometimes in the same day. An example would be betting on a stock's move immediately after earnings are reported. That's a trade.


Investing involves longer time horizons, as much as a year or more, and it typically involves themes that have breadth such as the renaissance in housing or the resurgence of banks. 

Things to note on Trading

1. Make sure you have a catalyst

Would not trade if I couldn't explain exactly what the company did and why I liked it and what I expected to happen.

2. Develop an exit point 

Do no buying of anything unless you have an exit strategy in place from the moment you put the trade on. And that doesn't just mean a level at which to stop out if the trade goes against you. It also means knowing at what level you'll ring the register if you have profits.

3. Trade with conviction

If you have little confidence, you can easily be shaken out by the broader market,. Sometimes stocks decline before they advance. You need to believe in your thesis each and every day.
If you can do all of those things and you have an interest in trading rather than investing, Give it a try – but start small.

5 Things should be in your portfolio

1) Growth Stock
2) Hight-Yield
3) Speculative
4) Foreign
5) Gold : Use as Hedge. Insurance against economic and geopolitical chaos as well as inflation.   

* The above are summaries from articles in

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