Stock Market trading Tips For Traders
A staggering 84% of respondents to a New Year's Resolution Survey from Allianz Life Insurance said that financial planning was not among their 2014 resolutions at all—the highest percentage ever to reveal that in the survey's history.
What held them back? Well, 30% said they don't believe they make enough money to "worry" about financial planning. That's bizarre. Shouldn't having less money increase your need to manage what you have effectively?Regardless of your situation, I hope you'll engage in the planning process this year—and the sooner you get started, the better.
Here are six key elements one should remember when planning their finances:
Maintain a well-diversified investment portfolio.
Although the economy is improving, the stock market is at an all-time high and corporate profits are also showing signs of improvement, much weakness and uncertainty remain both in Indian and global markets. Therefore, this is no time to make big UN-calculated bets. Hence we recommend a diversified portfolio across sectors, market capitalization and if possible geographies. Stocks should include large-cap, mid-cap and small-cap; growth and value; developed and emerging markets. Your portfolio should also include real estate (diversified by type and geography) and bonds (government and corporate), as well as traditional Gold. One of the most cost-effective ways to accomplish this exposure to Gold is through exchange traded funds.
Rebalance the portfolio as needed.
Most people never re balance their portfolios, which can cause their risks to rise and profits to fall. And many who do re balance do so on a calendar basis. We eschew that method as inefficient—who's to say you need to issue buys/sells/trades just because it's June 30? That's why we re balance our clients' accounts on a percentage basis. When a portfolio drifts beyond preset limits, we re balance—as often or as seldom as necessary. This requires a daily review of each portfolio, a chore our clients happily delegate to us. But you can do it, too, if you are willing to take the time.
Go for long-term bonds.
The RBI has been increasing repo rates and we believe currently we are close to the peak on the interest rate cycle. Hence we are recommending investors to remain invested in longer term bonds and fixed income instruments. This will help reduce interest-rate risk while maintaining diversification.
Contribute the maximum to your retirement plan at work.
If you can't put in the full amount now, increase your contribution each year until you can. And commit to placing half of future pay raises in the plan.
Review your estate plan.
Look at your will, trust documents, powers of attorney and beneficiaries on your retirement accounts, annuities and life insurance policies. People may have died or been born since you signed the documents, or you might not still feel as you once did about heirs. Reading the documents will give you the opportunity to update them.
If you don't have a comprehensive long-term financial plan for yourself and your family, get one from an independent, objective, fee-based financial planner. You can also select the future of stock market trading. Robotic trading system is the best option to increase your profit.To get more information about robotic trading system just fill this simple form.
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