Diversification is one of the popular ways in which investors safeguard their investments against risk. Often, they invest in a variety of stocks which could also be from different markets. Aside from stocks, they could also add mutual funds and bonds to their portfolio. Other investors choose property markets, hedge funds and also commodities as avenues for diversification.

Strategy is the means by which a desired end can be achieved. Long term trading also requires a strategy, specifically an individual strategy. Various people have different trading methods and strategies, all in a bid to realize a certain trading outcome.But, as an individual investor, you ought to have your own trading strategy that you stick to at all times. It’s not advisable to juggle between trading styles and strategies as the outcome could be outrageous.

Have a Long-Term Horizon

Most investors are usually attracted by short-term ventures which have huge returns. However, adopting a long-term view of investments is what will create sustainable wealth for you.

Always Endeavor To Minimize Total Tax Payable

Well, two things that are for sure in this world are death and taxes. Yes, taxes can eat up your investment proceeds if you are not careful.This is not an argument to support tax evasion, but a reminder to always check for tax benefits. Always be on your toes looking for ways you can minimize the total tax payable in order to have an after-tax return that you can smile about.

Don’t Always Rely On the Price-Earnings Ratio

Many investors over-rely on the price-earnings ratio. In fact, they solely use this ratio as the determinant of a buy or sell decision. Well, there are many other tools out there that are key in making such decisions and are used in conjunction with the price-earnings ratio.

Avoid Trading the Market Noise

Another pitfall that most investors plunge themselves into is making a trade decision based on what others are doing and also the popular opinion.No matter how well-meaning it may sound, always stick to your guns. Always make a trade based on reason backed by thorough analysis and research.

Trading CFDs involves a significant risk of loss that may not be suitable for all investors. Please ensure you fully understand the risks and take appropriate care to manage your exposure.
For more information please read our Risk Disclosure

Trading CFDs involves a significant risk of loss that may not be suitable for all investors. Please ensure you fully understand the risks and take appropriate care to manage your exposure.

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Tips for Long Term Trading

Over the years, investors and parties with vested interests in the market have identified some tips that are sure to give a better edge to anyone that’s looking for long-term success in trading. Let's consider some of these tips:

Diversification

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Tips for Long Term Trading

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Diversification

This article is available only to alvexo plus members, register now, and get 7 days of free membership.

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