The number one error of investors makes this season of results



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The results season started on Friday.

If it's too difficult to avoid the temptation to check regularly, Batnick gives other advice to investors worried about the volatility of the results.

"If you are actively negotiating, you can not worry about what the market could do or not do because it's totally elusive and it's really hard to try to predict it day-to-day." , says Batnick. I said. "But if you are actively trading, you have to manage your risk."

One way to do this is to size the position, he said. For example, if an investor wants to risk 1% of the capital of his portfolio, but allows only a 10% retention, this position should not exceed 10% of the total portfolio. If an investor is willing to reduce his holding by 20%, he should limit this limit to a position of 5% of his portfolio.

For the long-term investor, it is to know his appetite for risk and to adjust the daily noise, he adds.

"If you are really invested in individual stocks for the long term, focus on the business, focus on fundamentals, and do not be distracted by fluctuations and daily movements," he said. .

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