Thoughts on Risk Management

[oilman5]

can you share your thoughts on portfolio management?

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for me PORTFOLIO is a list of stock in which i watch . i use at present 2software- omnitrader and metastock. so based on principle of search category - i define OPPORTUNITY . ON 1st opportunity of market , i take the trade and do risk manage.since i believe in trading , its about 50 stock + analysis of nifty.
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i am not an investor / nor i believe to have that ability. So bookish defn of portfolio / diversification is theory for me.
regards

 

[billi]

I believe that the portfolio is something which we built by the passage of time like stocks, bonds, cash etc. We can diversify our portfolio to different buckets to minimize the associated risks of financial lose.

 

[Nisha Khanna]

Portfolio management involves strategically buying and selling of the stock or other assets with an aim of winning the broader market.

 

[stoch]

I believe that the portfolio is something which we built by the passage of time like stocks, bonds, cash etc. We can diversify our portfolio to different buckets to minimize the associated risks of financial lose.

Yeah but in order to do that you have to be good at data mining and have some knowledge of statistics, though there are many libraries that can help to automate this process.

 

[billi]

Eventually becoming good at anything comes with time in my opinion so we need to keep on moving and learning new things with each passing day.

 

[Anand Kumarr]

Portfolio diversification is surely a great way to manage risk. I understand stocks and mutual funds the most and so, most of my savings are in these financial instruments.

 

[billi]

Good to know your expertise, also learn some new investment avenues and grow your financial positions gradually.

 

[Rajendra Vaikar]

Risk management is extremely worth it. It reduces major losses and keeps consistent profit incoming despite the constant fluctuating market conditions. If traders don't control risk, they lose and are forced to quit.

 

[stoch]

Portfolio diversification is surely a great way to manage risk. I understand stocks and mutual funds the most and so, most of my savings are in these financial instruments.

I'm also keen on exploring new diversification strategies, currently I mix trading in certain proportions using major pairs, crosses, metals and indices and also combine various trading styles as scalping, position and swing trading.

 

[HirendraRamamuthe]

Risks are inevitable and you can never run from them. Stop loss and proper money & risk management are effective in minimising risks but when the market goes wild, it won’t give you any chance to exit in stop loss. There’s nothing called assured risk management, you need to learn risk management slowly according to your strategy.