This practice can help manage volatility because not all stocks move the same way when the broader market swings. It also prevents a big drop in a single security from inflicting major damage on an account. And perhaps most important, diversification can reduce the kind of bad emotional reactions that happen when accounts swing in value.
All else being equal, a trader with poor stock selection and sound risk management will outperform and survive longer than the trader with great stock selection and poor risk management.
According to the Australian Trade and Investment Commission, the Asian region accounted for 62% of Australia’s two-way trade last year.
Hon Hai Precision Industry owns Foxconn, a company which assembles the majority of the world’s mobile phones in mainland China and is one of Apple’s most important manufacturers.
The S&P 500 rose 1.2 percent between Friday, March 22, and Friday, March 29. The index just finished its best quarter in almost a decade, up 13 percent, after climbing for three straight months.