MUST READ 🚨: PORTFOLIO AND RISK MANAGEMENT
Regardless of whether you're trading or investing, effective portfolio management is crucial.
Diversifying your holdings across different asset classes, industries, and geographies can help mitigate risks.
Asset allocation, which involves determining the proportion of your portfolio in various asset types, plays a significant role in managing risk and achieving your financial objectives.
Risk management involves identifying and assessing potential risks associated with your investments.
This includes market risk (price fluctuations), credit risk, liquidity risk (difficulty in selling assets), and geopolitical risk (political events impacting markets).
Implementing risk-reduction strategies and setting appropriate position sizes can help protect your portfolio.
