Lauren Hua

Ways to Reduce Losses in your Stock Portfolio

The share market is the best performing asset class over time. It is however, the most volatile. It is a reality that you will have losses along the way. The key of course is to minimise those losses as much as you can. There are several strategies which can be implemented to reduce losses in your portfolio. Higher risk means higher return, but the risk can be mitigated by using some of the following methods. Diversification Diversification helps to reduce …

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Top-down investing versus bottom-up investing

There are many different investment strategies that investors can undertake when investing in stocks. The terms “top down investing” and “bottom up investing” are two strategies which can be used when trading. Here we discuss the meaning and differences between top-down investing and bottom-up investing. Top-down investing This strategy involves analysing stocks on a macro level. This means that the investor is looking at the overall picture of the economy and ascertains which sectors will be performing the best. These …

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Active versus passive investing

Active and passive investing are terms which have been used frequently in the media as the debate continues over which one is better. In this article we discuss the differences between the two and the pros and cons of each. Active management An active management strategy is one where fund managers try and beat the market by actively managing the portfolio. An active portfolio manager seeks to identify and exploit opportunities to find mispricing in stocks in the market. Repeating …

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What is market breadth?

Share traders use various indicators to gauge the sentiment in the market. They use these tools to determine whether the general stock market is feeling optimistic or pessimistic. In this article we discuss what market breadth means and how to determine its strength. Definition Market breadth can show the strength of the market by looking at how many stocks are increasing in price against how many stocks are decreasing in price. If there are more stocks with increasing stock prices …

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The advantages and disadvantages of your own SMSF

The decision to open your own Self Managed Super Fund (SMSF) may be difficult one. It is therefore important to understand the pros and cons of SMSF‘s to help you decide whether a SMSF is best for your current life circumstances. Advantages: Control: You have total control of the investments you hold in your fund. If you have a super account with a fund manager – you have no control over the investments bought and sold in the fund. The …

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