La diversification

Présentation, Développement, Améliorations et Ressources pour les Stratégies de Trading Automatique.

Modérateur : Administrateurs

Membre actif
Messages : 19
Inscription : 31 déc. 2021, 00:21

La diversification

#1 Message par pattern »

Tips for Diversifying Your Portfolio

Investors are warned to never put all their eggs (investments) in one basket (security or market) which is the central thesis on which the concept of diversification lies.

To achieve a diversified portfolio, look for asset classes that have low or negative correlations so that if one moves down the other tends to counteract it.

ETFs and mutual funds are easy ways to select asset classes that will diversify your portfolio but one must be aware of hidden costs and trading commissions.

What Is Diversification?

Diversification is a battle cry for many financial planners, fund managers, and individual investors alike. It is a management strategy that blends different investments in a single portfolio. The idea behind diversification is that a variety of investments will yield a higher return. It also suggests that investors will face lower risk by investing in different vehicles.

5 Ways to Help Diversify Your Portfolio and Trading Signals

Diversification is not a new concept. With the luxury of hindsight, we can sit back and critique the gyrations and reactions of the markets as they began to stumble during the dotcom crash and again during the Great Recession.
Here are five tips for helping you with diversification:

1. Spread the Wealth
Equities can be wonderful, but don't put all of your money in one stock or one sector. Consider creating your own virtual mutual fund by investing in a handful of companies you know, trust and even use in your day-to-day life.
But stocks aren't just the only thing to consider. You can also invest in commodities, exchange-traded funds (ETFs), and real estate investment trusts (REITs). And don't just stick to your own home base. Think beyond it and go global. This way, you'll spread your risk around, which can lead to bigger rewards.
People will argue that investing in what you know will leave the average investor too heavily retail-oriented, but knowing a company, or using its goods and services, can be a healthy and wholesome approach to this sector.
Still, don't fall into the trap of going too far. Make sure you keep yourself to a portfolio that's manageable. There's no sense in investing in 100 different vehicles when you really don't have the time or resources to keep up. Try to limit yourself to about 20 to 30 different investments.

2. Consider Index or Bond Funds
You may want to consider adding index funds or fixed-income funds to the mix. Investing in securities that track various indexes makes a wonderful long-term diversification investment for your portfolio. By adding some fixed-income solutions, you are further hedging your portfolio against market volatility and uncertainty. These funds try to match the performance of broad indexes, so rather than investing in a specific sector, they try to reflect the bond market's value.

These funds are often come with low fees, which is another bonus. It means more money in your pocket. The management and operating costs are minimal because of what it takes to run these funds.

One potential drawback of index funds is their passively managed nature. While hands-off investing is generally inexpensive, it can be suboptimal in inefficient markets. Active management can be very beneficial in fixed income markets, especially during challenging economic periods.

3. Keep Building Your Portfolio
Add to your investments on a regular basis. If you have $10,000 to invest, use dollar-cost averaging. This approach is used to help smooth out the peaks and valleys created by market volatility. The idea behind this strategy is to cut down your investment risk by investing the same amount of money over a period of time.

With dollar-cost averaging, you invest money on a regular basis into a specified portfolio of securities. Using this strategy, you'll buy more shares when prices are low, and fewer when prices are high.

4. Know When to Get Out
Buying and holding and dollar-cost averaging are sound strategies. But just because you have your investments on autopilot doesn't mean you should ignore the forces at work.

Stay current with your investments and stay abreast of any changes in overall market conditions. You'll want to know what is happening to the companies you invest in. By doing so, you'll also be able to tell when it's time to cut your losses, sell and move on to your next investment.

5. Keep a Watchful Eye on Commissions

Membre actif
Messages : 19
Inscription : 31 déc. 2021, 00:21

Re: La diversification

#2 Message par pattern »

Understanding Risk Management
Risk management occurs everywhere in the realm of finance. It occurs when an investor buys U.S. Treasury bonds over corporate bonds, when a fund manager hedges his currency exposure with currency derivatives, and when a bank performs a credit check on an individual before issuing a personal line of credit. Stockbrokers use financial instruments like options and futures, and money managers use strategies like portfolio diversification, asset allocation and position sizing to mitigate or effectively manage risk.

Inadequate risk management can result in severe consequences for companies, individuals, and the economy. For example, the subprime mortgage meltdown in 2007 that helped trigger the Great Recession stemmed from bad risk-management decisions, such as lenders who extended mortgages to individuals with poor credit; investment firms who bought, packaged, and resold these mortgages; and funds that invested excessively in the repackaged, but still risky, mortgage-backed securities (MBSs).
Practice trading with virtual money
Find out what a hypothetical investment would be worth today.
5 years ago
Good, Bad, and Necessary Risk
We tend to think of "risk" in predominantly negative terms. However, in the investment world, risk is necessary and inseparable from desirable performance.

A common definition of investment risk is a deviation from an expected outcome. We can express this deviation in absolute terms or relative to something else, like a market benchmark.
gold trading strategy

While that deviation may be positive or negative, investment professionals generally accept the idea that such deviation implies some degree of the intended outcome for your investments. Thus to achieve higher returns one expects to accept the greater risk. It is also a generally accepted idea that increased risk comes in the form of increased volatility. While investment professionals constantly seek—and occasionally find—ways to reduce such volatility, there is no clear agreement among them on how it's best done.

How much volatility an investor should accept depends entirely on the individual investor's tolerance for risk, or in the case of an investment professional, how much tolerance their investment objectives allow. One of the most commonly used absolute risk metrics is standard deviation, a statistical measure of dispersion around a central tendency. You look at the average return of an investment and then find its average standard deviation over the same time period. Normal distributions (the familiar bell-shaped curve) dictate that the expected return of the investment is likely to be one standard deviation from the average 67% of the time and two standard deviations from the average deviation 95% of the time. This helps investors evaluate risk numerically. If they believe that they can tolerate the risk, financially and emotionally, they invest.

Risk Management Example
For example, during a 15-year period from Aug. 1, 1992, to July 31, 2007, the average annualized total return of the S&P 500 was 10.7%. This number reveals what happened for the whole period, but it does not say what happened along the way. The average standard deviation of the S&P 500 for that same period was 13.5%. This is the difference between the average return and the real return at most given points throughout the 15-year period.

When applying the bell curve model, any given outcome should fall within one standard deviation of the mean about 67% of the time and within two standard deviations about 95% of the time. Thus, an S&P 500 investor could expect the return, at any given point during this period, to be 10.7% plus or minus the standard deviation of 13.5% about 67% of the time; he may also assume a 27% (two standard deviations) increase or decrease 95% of the time. If he can afford the loss, he invests.

Risk Management and Psychology
While that information may be helpful, it does not fully address an investor's risk concerns. The field of behavioral finance has contributed an important element to the risk equation, demonstrating asymmetry between how people view gains and losses. In the language of prospect theory, an area of behavioral finance introduced by Amos Tversky and Daniel Kahneman in 1979, investors exhibit loss aversion. Tversky and Kahneman documented that investors put roughly twice the weight on the pain associated with a loss than the good feeling associated with a profit.

Often, what investors really want to know is not just how much an asset deviates from its expected outcome, but how bad things look way down on the left-hand tail of the distribution curve. Value at risk (VAR) attempts to provide an answer to this question

Avatar de l’utilisateur
Messages : 17116
Inscription : 17 mars 2008, 19:41
Localisation : Paris, France

Diversification excessive : être partout c'est n'être nul part

#3 Message par Fabien LABROUSSE »

📈 Diversification excessive : être partout c'est n'être nul part

🎙️ Maëva Chazal Head of Sales chez IG France

"Au début bon je comprends c'est c'est hyper excitant quand on se lance dans le trading que ça commence à fonctionner on a envie d'aller sur de nouveaux marchés, on a peut-être commencé avec les indices, les actions et puis après on a envie d'aller sur le Bitcoin, on a envie d'aller sur les matières premières... Le problème c'est que le moment où ça devient trop de positions dans tous les sens sur des marchés qu'on ne maîtrise pas, c'est trop dangereux et c'est là qu'il faut trouver la balance entre diversification et trop de positions. Donc bien sûr il faut se diversifier et ne pas mettre tous ses œufs dans le même panier en mettant tout son portefeuille sur un indicateur ou sur une paire de devises, mais dans le même temps il faut pas que ce soit dans l'excès donc avoir un petit peu d'indices, un petit peu de FOREX, un petit peu de matières premières, oui, mais avoir 15 positions ouvertes, et je le répète quand on débute voilà c'est ça va être hyper difficile à suivre en matière de graphiques, ça va être un stress aussi hyper important, donc vraiment ça éviter. Après c'est sûr que quand on est plus expérimenté à ce moment-là voilà c'est c'est autre chose mais quand on débute attention. Je dirais une chose..."


La Structure (par VideoBourse) : Formation sur mesure et évolutive pour optimiser compréhension et résultats en trading

📈 Informations et inscriptions :

🤝 Contact et échanges avec la communauté : Discord, mail, téléphone, LinkedIn...

📖 Marchés en aparté : Témoignages de traders, investisseurs, analystes et économistes sur les marchés financiers