Investing in penny stocks can be an extremely profitable venture, but with that comes higher risks.
This means it's vital you handle your portfolio and risks to deal with this.
So how can you go about doing this?
Read on to find out…
How to manage your penny stocks portfolio
Of the portion of your portfolio you decide to invest in penny stocks, you should aim to invest in be... ››› more
Just like investing in any other stocks, you need to spend some time managing your penny stock portfolio.
So how should you do this?
Read on to find out…
Watch the trading volumes of your penny stocks
Trading volume is simply how many shares trade for a particular stock. With penny stocks, the trading volume can be low. The lower the trading volume, the more illiquid the share.
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If you're investing in shares, it's likely because you know that over the long-term stocks perform better than other asset classes.
But investing in shares isn't easy. In fact, it can be very difficult to know how to do it in the best way.
So how can you manage your portfolio so you benefit from the stock market's long-term performance?
Read on to find out…
An introduction to port... ››› more
If your goal is to build a long-term investment portfolio that performs well over the years, there are a few things you can do to improve your chances of success.
It all comes down to how you manage your portfolio.
Read on to discover four tips to help you build a top performing portfolio…
Investment tip #1: Spread your risk
When building your investment portfolio, it’s vital to... ››› more
Global stock markets have been on a rough ride over the last few weeks, seesawing up and down.
The Johannesburg Stock Exchange has also been extremely volatile.
So how can you manage your portfolio to deal with these rough stock market movements?
Read on to find out…
Dealing with the stock market’s moves
When the stock market is veering about all over the place, it can make y... ››› more
Diversification is an essential aspect of portfolio management. By not putting all your eggs in one basket, you can reduce the risk you take on when investing.
So why does diversification work? And should you bother?
Read on to find out more…
What is diversification is all about?
The idea behind diversification is you spread your stock market risk by investing in a number of diffe... ››› more
When you first invest, you should decide on what asset allocation you're going to stick to. For example, what percentage of your portfolio you'll hold in stocks and what percentage you'll hold in bonds.
Over time, the asset allocation of your portfolio will change as their underlying values rise and fall. So every now and then you need to rebalance your portfolio.
But what's the best way to ... ››› more
You must have heard of exchange-traded funds (ETFs) by now. But there's a lot of confusion about what they are and how they differ from unit trusts.
ETF’s vs Unit trusts: What’s better?
Before I get carried away, let me differentiate between unit trusts and ETFs. See, a unit trusts is a collection of stocks, passively or actively managed. You can basically buy for example, s... ››› more
No investor buys a share thinking that it's not going to perform. You buy a share hoping that it's going to keep increasing in price, making you richer in the process.
But as every investor knows, this isn't the case.
So when should you sell a share that's not performing? You might want to hold on, just in case the share recovers.
Read on to uncover more about selling dud shares…
... ››› more
It's not just about buying shares and ensuring you have a diversified portfolio. To help you achieve success in the markets, you also need to make sure you've got your balance right. And the best way to achieve that is to rebalance your portfolio on a regular basis. So what does rebalancing entail? Read on to find out…
Decide on the asset allocation of your portfolio
How you allocate your... ››› more
As our family's ‘Financial Expert' I always have family members coming to me for help. And this past week I received a mail from a family member asking me to have a look at a retirement policy of theirs and whether they should continue paying it past 55.
When I saw its contents I was ready to explode.
You see, this retirement plan my family member was pay towards wasn't benefitting him at ... ››› more
Don't put all your eggs in one basket. It's an ancient piece of investment advice, and one that everyone should follow. But once you've put your investment portfolio together, how do you look after it and make sure it keeps doing what it's supposed to be doing? They key is to regularly ‘rebalance' it. Read on to discover what you need to know about rebalancing…
Let’s say that you’ve put ... ››› more
You should try and keep investing as simple as possible. You want a strategy that is cheap - so you don't waste money on costly managers or complex products - and low maintenance, so you can get on with the important things in life. Read on to discover how you can build a ‘buy and forget' portfolio…
Keeping it simple is exactly what American financial adviser Harry Browne tried to design wit... ››› more
Position sizing is an important aspect of portfolio management. But, be careful how you split your pot. If you invest too much in each share, you could be worse off. Read on to find out why…
A general rule of responsible investing and good risk management is that you should never invest more than 5% of your portfolio in any single share.
Say you’ve put aside R100,000 to invest in the stoc... ››› more
It's important that you stay on top of the contents of your investment portfolio and maintain it to ensure that any laggards in your portfolio are whittled out. Here's how to spot the ‘red flags' that indicate some shares in your portfolio need to be turfed out…
To prevent yourself from holding onto dud shares, you need to cull the laggards and only hold winners.
That’s easier said than... ››› more
It may come as a surprise, but there are only six factors that determine what your investment portfolio will be worth in the future, says the global investment team at The South African Investor. And it doesn't matter whether you're investing R10,000 or R10 million, these factors apply equally. Read on to discover what they are… There are six factors that determine your investment portfolio’s ... ››› more
The risk of losing money when you invest is inevitable. But knowing how to manage your risk can make you a profitable investor. Here's one method you can use to better manage your risk and protect your money when buying stocks. “When you first decide to start investing in shares it’s exciting. When shares go up, as an investor, there’s no better feeling. But the shares you’ve bought with y... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.