Common Investor and Trader Blunders

jayc
2021-12-23

Not Regaining Balance

Rebalancing is the process of returning your portfolio to its target asset allocation as outlined in your investment plan. Rebalancing is difficult because it may force you to sell the asset class that is performing well and buy more of your worst-performing asset class. This contrarian action is very difficult for many novice investors.

However, a portfolio allowed to drift with market returns guarantees that asset classes will be overweighted at market peaks and underweighted at market lows—a formula for poor performance. Rebalance religiously and reap the long-term rewards. 

$Tesla Motors(TSLA)$$AMC Entertainment(AMC)$$Meta Platforms, Inc.(FB)$

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精彩评论

  • falleno
    2021-12-23
    falleno
    No matter what, you can't sell high-quality assets.
  • dimsum
    2021-12-23
    dimsum
    Thanks for sharing. It's really hard to make profits by buying and selling stocks.
  • cutieee
    2021-12-23
    cutieee
    Stock trading is risky, and retail investors must be cautious in trading.
  • waipoin
    2021-12-23
    waipoin
    Thanks for sharing. What you said is really hard to do.
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