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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评论（4）

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