5 Ways to Build a Stock Portfolio to Get Maximum Profit
5 Ways to Build a Stock Portfolio to Get Maximum Profit.
Stock Portfolio
Don't take the wrong step, here are stock investment tips in compiling a stock investment portfolio so you can earn up to the moon:
1. First set your investment goals and timeframe
Investment will be more ideal if it has a definite goal. The goals of course vary according to the wishes and interests. You can use your investment money to get married, build a house, build a business in the future, prepare for retirement or travel around the world. All of that is in your hands.
With a definite goal, you can better know what investment period is suitable according to your needs. Is it short or long term. Because the investment period is different, the strategy that must be applied is also different.
2. Determine the profile of investors and their risks
Before investing, first know what kind of investor you will be. Because there are investors who are calm, and prefer to be safe. Usually this type of investor will avoid high risk. And this is very reasonable because it is in accordance with the character of the person.
But there are also investors who are very enthusiastic and do not hesitate to pour large amounts of capital to achieve the highest profits. However, investors like this must be prepared to lose because the risk profile they take is high.
Now the difference in the character of each investor must be adjusted to the type of investment chosen. Moderate investors and conservative investors tend to avoid high risk and maybe you will prefer stock investment instruments whose prices look stable.
Then for the aggressive type of investor, they will choose to buy stocks whose initial price may be low, but they believe that one day the price can rise and bring profits or doubled returns to them.
3. Prepare capital
There is no investment if there is no capital. But it would be wise to invest appropriately with the ability of the capital owned. Do not force large capital out because of the lure of big profits. Because whether investment with large or small capital can all achieve maximum profit with a good strategy.
The amount of capital is no longer a measure of the profits to be obtained. Now anyone can invest from the most minimal capital though. From a minimal capital you can still make a profit. So be wise in spending capital for your first investment.
4. Balance risk and return
This balance between risk and return needs to be done, especially for those of you who have or will invest in more than one type of stock. This is why it is so important to know how stock investing works before trying to invest.
The trick is to choose stocks whose prices are stable combined with stocks that you can see the potential price will increase in the future. Examples such as value stock and growth stock.
This balance must be monitored frequently so that you do not get carried away with what you get. Because it can be quite dangerous if you experience continuous losses that are greater than the profits obtained.
5. Investment Diversification
To make your stock portfolio look even better, you can diversify your investments. Diversification means placing investment funds in several investment instruments with different characteristics. The characteristics referred to here are liquidity, potential return, and risk.
For example, you invest in property that you can run to bring you passive income or invest in gold that can help you when the country's economy is unstable or you can also invest in bonds whose interest is much higher than deposits.
You can rely on these various investments while investing in stocks. The purpose of diversification is to reduce the investment risk that is in front of you. This is a strategy that you can do, in addition to the options above.
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