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.
Shares of PayPal (NASDAQ: PYPL)
have surged from around $US77 ($109) late last year to probe record highs above $US97 in late February on the back of analyst upgrades and overall optimism for the company.
The Fed is going to hold a two-day FOMC meeting, on September 25th -26th. According to CME FedWatch, there is a 94.4% chance that interest rates will increase by 0.25%, which turns out to be 2.25%.
All of the companies listed in US market announced their quarterly earnings by today. Luckily, we saw S&P 500 quarterly bottom-up EPS growth was +25% on year-to-year basis.
Are you interested in trading the international stock markets? This is an activity which can grow and diversify your portfolio of investments and give you… Read More »5 tips to become a successful international equities trader