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Balancing A Stock Portfolio
Balancing a stock portfolio is done to increase profits and reduce risk in stock investment. A stock portfolio is the collection of stocks that a person owns. In picking stocks for a portfolio an investors seeks diversification of his investments. Diversifying a stock portfolio helps reduce investment risk and increases opportunity to hit an investment home run. Balancing a stock portfolio typically requires that investors purchase stock in several different market sectors. Buying large cap stocks, mid cap stocks, and small cap stocks is also an investment strategy used in balancing a stock portfolio. The investor goes about picking stocks as always but he purposely does not buy stocks in the same industry. It is possible to use a portfolio management service but investors or traders balancing a stock portfolio should know how to do their own fundamental and technical analysis. Scouting out stocks in crisis and buying at the bottom of the price curve is a viable strategy. Using Candlestick analysis to anticipate market trends and market reversal is integral to managing and balancing a stock portfolio.
In balancing a stock portfolio the investor will decide first upon his investment goals. Long term investing will require a different approach from short term investing. Older investors typically pick stocks with less risk but also lower reward potential. Younger investors commonly invest in stocks with more growth potential but which often are more risky. One approach to diversifying a stock portfolio is to balance risk. One or two stocks in a portfolio may be risky growth stocks while others will be dividend stocks which offer low growth potential but long term security. Microsoft in its younger years was a growth stock. Today it offers security and a dividend but little opportunity for the exponential growth of two decades past.
Investing in stocks in several market sectors is a common approach to balancing a stock portfolio. By not putting all eggs in one basket, or market sector in this case, the investor will not be hurt by economic events the affect the whole sector. By purchasing stocks in more than one sector the investor increases his chances for picking a big winner. However, it is not the mere act of picking more than one stock that makes balancing a stock portfolio successful. Use of both fundamental analysis and technical analysis with Candlestick pattern formations allows the investor to search for stocks that have the potential for near term rapid growth as well as long term stability. In balancing a stock portfolio the investor can choose different strategies for each of his stock picks. He can invest in high tech in bio technology, banking to take advantage of a growing economy, or big oil companies if he believes that prices will rise.
2. Balancing a stock portfolio
is done to increase profits
and reduce risk in stock
investment.
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3. A stock portfolio is the
collection of stocks that a
person owns.
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4. Inpicking stocks for a
portfolio an investors
seeks diversification of his
investments.
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5. Diversifying a stock
portfolio helps reduce
investment risk and
increases opportunity to
hit an investment home
run.
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6. Balancing a stock portfolio
typically requires that
investors purchase stock in
several different market
sectors.
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7. Buyinglarge cap
stocks, mid cap
stocks, and small cap
stocks is also
an investment
strategy used in balancing
a stock portfolio.
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8. The investor goes about
picking stocks as always
but he purposely does
not buy stocks in the same
industry.
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9. It is possible to use a portfolio
management service but
investors or traders balancing
a stock portfolio should know
how to do their
own fundamental and
technical analysis.
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10. Scouting out stocks in crisis
and buying at the
bottom of the price curve
is a viable strategy.
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11. Using Candlestick analysis to
anticipate market
trends and market reversal is
integral to managing and
balancing a stock portfolio.
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12. In balancing a stock
portfolio the investor will
decide first upon his
investment goals.
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13. Long term investing will
require a different
approach from short term
investing.
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16. One approach to
diversifying a stock
portfolio is to balance risk.
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17. One or two stocks in a
portfolio may be risky growth
stocks while others will
be dividend stocks which
offer low growth potential
but long term security.
www.CandlestickForums.com
18. Microsoft in its younger years
was a growth stock. Today it
offers security and a dividend
but little opportunity for the
exponential growth of two
decades past.
www.CandlestickForums.com
19. Investing in stocks in
several market sectors is a
common approach to
balancing a stock portfolio.
www.CandlestickForums.com
20. By not putting all eggs in
one basket, or market
sector in this case, the
investor will not be hurt by
economic events the affect
the whole sector.
www.CandlestickForums.com
21. By purchasing stocks in
more than one sector the
investor increases his
chances for picking a big
winner.
www.CandlestickForums.com
22. However, it is not the mere
act of picking more than
one stock that makes
balancing a stock portfolio
successful.
www.CandlestickForums.com
23. Use of both fundamental
analysis and technical
analysis with Candlestick pattern
formations allows the investor to
search for stocks that have the
potential for near term rapid
growth as well as long term
stability.
www.CandlestickForums.com
24. In balancing a stock
portfolio the investor can
choose different strategies
for each of his stock picks.
www.CandlestickForums.com
25. He can invest in high tech in
bio technology, banking to
take advantage of a growing
economy, or big oil
companies if he believes that
prices will rise.
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26. He should limit the
number of stocks in his
portfolio to the number
that he can comfortably
follow with Candlestick
charting techniques
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27. in order not to buy a stock
for which market
sentiment promptly
changes.
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28. Balancing a portfolio is
never an excuse for not
watching the performance
of each and every stock
that one owns.
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