Question : what does Portofolio mean in Stock trading ?
I want to know ,what does PORTFOLIO mean in Stock trading ?How one can create it ?And how to manage it ?
- asked by sourabhs
All Answers: Answer #1 portfolio = all the stocks that you are holding.fund managers or investors will make sure thestocks they are holding are "mark to market" onthe realtime basis. Any price movement willtriggered the fund value to change.In a moresophiscated system, the buy order or sell ordercan be triggered by the system. The tradinginstructions are set by the fund managerthemselves.a good portfolio will hold stocks frommultiple industries.create it by buying somestocks which can give good returns.manage it bymonitoring the stocks over a period of time. mostfund managers already set some goals in what theywant to achieve. Buying and selling is part oftheir job. - answered by Insurance
Answer #2 A portfolio is just the list of the stocks, bonds,mutual funds and other investment securities thatyou own. If you buy 100 shares of XYZ Corp. thatis your portfolio. The more you buy the larger theportfolio. Managing it is more difficult. You canmanage it yourself by reading the financialreports of the securities you buy or want to buyand make the decisions yourself on when to buy andsell. The second way is to get help from aprofessional. Most large banks have a brokeragedept where you can get help from a financialadvisor at no cost other than the brokerage feesassociated with your purchases. The key here is tofind someone you trust. This person should askenough questions to find out what your financialgoals are and your tolerance for risk and yourtime frame you are looking at. IF YOU DO NOT FEELCOMPORTABLE WITH THIS PERSON DO NOT INVEST! FIND ADIFFERENT ADVISER. Investing is a long termprocess and should be looked at in those terms.You also need to be able to ride out the ups anddowns of market fluctuations. The big downturn in2000 cost me 40% of my retirement funds but by notselling and riding it out it all came back overthe next several years. One thing to remember "Itisn't a loss until you actually sell it." - answered by BigDog507
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