The philosophy of wise investment is based on the principle of building a portfolio from various assets. An investment portfolio with high diversification is a tool for the work of all well-known investment gurus (W. Buffett, R. Dalio) who adhere to the rule “do not lose money on investing”. Portfolio investment not only allows you to partially or completely take control of all risks and not “burn out”, but also to achieve the predicted level of profitability.
An investment portfolio is a set of financial investments that allows an investor to protect their finances from losses and increase their investments. By competently distributing your investment capital across different investment products (Pamm accounts, Pamm account indices, MAM accounts, Trust Management, Active investor, copying Pro-rebate signals).
Well-created portfolios allow you to achieve several main goals at once:
? Protect the investor’s capital from the risks associated with the probable bankruptcy of the PAMM-manager, the collapse of the index, and other unpleasant surprises.
? Create conditions for the preservation of capital. If some tools or products are causing losses, they are usually more than offset by the profits from others. This principle works in all market conditions.
? To ensure the receipt of stable and high profits. The portfolio usually includes only the most reliable and highly profitable instruments that guarantee the investor high returns.
However, the practice of investing in the Forex market shows that not in all cases portfolios really turn out to be an effective way of investing capital. The reason for investors’ failures is simple – to distribute money investments, they often knock out, to put it mildly, the wrong financial instruments and products, and also open accounts with not the most reliable brokerage companies.
However, the need to create investment portfolios in the Forex market is great. They are needed both by those trading participants who are adherents of passive investing and by successful traders who need to profitably place their earned capital.
The purpose of this project is to test investment portfolios created by the students of the Masterforex-V Academy. Note that portfolios are created taking into account three main factors:
? The logic of choosing investment instruments.
? Analysis of the strengths and weaknesses of financial instruments.
? Online controlled weekly profitability.
Thus, the maximum protection of the invested funds from all kinds of risks is achieved and profit is provided above the market average level, while various portfolios correspond to the concepts of the aggressive, conservative, and weighted average investment.
What is a cryptocurrency portfolio?
A cryptocurrency portfolio is a complex aggregation of an investor’s diverse cryptocurrency assets in the right proportion. The key task of a cryptocurrency portfolio is to ensure minimum riskiness and maximum return for an investor.
Unlike the investment portfolio of the stock market, the diversification of risks, in this case, is carried out not by investing in various assets, but by acquiring one asset – cryptocurrency in different tokens.
If, according to financial experts, it is worth forming a traditional investment portfolio only with a sufficiently large capital, then for the cryptocurrency market, creating a portfolio is relevant even for small investments.
Why is it worth creating a cryptocurrency investment portfolio?
By investing their investment capital in one type of cryptocurrency, the investor runs the risk of losing all investments if the rate collapses. The creation of a cryptocurrency portfolio allows you to reduce the risks of loss and level them out due to the increase in the value of other cryptocurrencies.
Among the additional benefits of creating a cryptocurrency portfolio from various tokens, one can highlight an increase in the chances of successful investments. The cryptocurrency market is quite young, but rapidly developing.
Where can you buy cryptocurrency?
It is best to buy cryptocurrency through online trading services. The most profitable buying and selling rates for cryptocurrencies can be found on exchanges like Cryptology. In fact, these are the same exchange sites, that is, an intermediary that only allows you to trade very quickly so that traders and brokers can earn on the rate jumps.