Tag: trading portfolio

  • A Trading Portfolio Should Look Like…

    A Trading Portfolio Should Look Like…

    Take a big breath and a pencil.

    2 min read

    Everyone has dreams about how the good life should look like. But it, besides earning enough money, it is necessary to build an investment or trading portfolio. Especially if you want to invest or trade cryptos.

    Before you begin building your complete financial portfolio you have to be calm and reasonable.

    Take a big breath and a pencil.

    The whole process of building a trading portfolio should be done in SEVERAL STEPS:

    STEP 1: Define why do you want to invest or trade. Your purpose is very personal.  If you thought saving and investing meant the same thing, you were wrong. Savings are the unutilized part of your income. Only when you put your savings partially or entirely into an investment instrument, it qualifies as an investment.

    STEP 2: Be realistic about your appetite for risk. Most of us know how much we have saved to date but very few of us have a realistic understanding of how much risk we’re willing to take on to achieve our financial goals. Your risk appetite will depend on your age and financial responsibilities.

    Young investors are under enormous stress! READ MORE

    STEP 3: Understand the relationship between risk and return. Risk and return are directly proportional to each other. Higher the risk involved, higher is the return and vice versa. For example, you have promises higher returns compared to fixed deposits, but it also comes with a relatively higher risk.

    Step by step to the trading portfolio

    STEP 4: Create a contingency fund. Honestly speaking, this has to be the first. Before you invest or trade anywhere, you must create a contingency fund for those rainy days. A contingency fund worth six months of your current income is good enough to keep you from dipping into your investment funds.

    STEP 5: “If you don’t know where you’re going, you’ll miss it every time.” – baseball philosopher, Yogi Berra. That means, you know your purpose for investing, but do you know what it will cost to achieve that purpose.

    STEP 6: Invest with a plan. The most successful portfolios are assembled based on a solid understanding of the fundamentals of the individual securities that comprise the portfolio. The trading portfolio should also factor risk tolerance into the balancing discussion.

    STEP 7: Give it time. While there may be some investment choices that you hold for shorter periods of time than others, overall, maintaining the long view should deliver consistently positive returns.

    And general advice while building a trading portfolio: TRY NOT TO BE OBSESSED!

    Markets can be volatile from day to day, even month-to-month, never mind hour-to-hour especially the market of cryptocurrencies. But over longer periods of time, volatility subsides. Build your portfolio and let it run.


    Checking the market every 15 minutes or so won’t affect your portfolio, but it will affect your sanity.

    When a lot of people think of investing or trading, they imagine painstakingly picking individual stocks, tracking their daily performance and constantly buying and selling. This may be good and interesting for TV shows or movies. But in real life it is agony.

    All you need to do is pick a couple of funds that attempt to mimic the total market’s behavior, and, for the most part, leave them alone for 5 or 10 years. It’s very simple, and it’s something everyone can and should do. In fact, it’s one of the best ways to effortlessly build wealth in the long term.

    There are more cryptos to the market and a good portfolio will usually include a few different types of investments.

    Are there any differences among trading portfolios for different assets?

    But when we are speaking about the trading portfolio, the principle is the same for cryptos and stocks: suitability, balancing different sectors and fund/crypto types.

    You can build a cryptocurrency portfolio using a risk-reward formula if that is acceptable to you. You are that one who has to decide how much risk you want to take on and that should influence which coins you invest in.

    Recommendation is keeping at least 50% of your portfolio in safe-ish coins like Bitcoin, Ethereum, Litecoin, Icoin.

    When building your own cryptocurrency portfolio you should not simply copy mine, always do your own research and decide which coins you can be excited about. Crucially, the entry point is very important and I entered many of these coins months ago when they were cheaper, there may be better buys out there right now. Buying more coins to expand your cryptocurrency portfolio is a smart idea.

    Diversify trading portfolio


    The more you diversify, the better your chance of hitting a coin that flies to the moon.

    To properly expand your portfolio, you will need to join a trading platform, some of the largest and most trusted trading platforms which list a wide selection of decent coins.

    Once you have your BTC in place on a cryptocurrency exchange, you can then expand your portfolio and buy other coins.

    How to structure your stock portfolio? HERE IS THE ANSWER

  • How To Follow Trading Portfolio?

    How To Follow Trading Portfolio?

    How To Follow Trading Portfolio?
    There you are! You are a proud owner of crypto or stock and have a trading portfolio! So, what is the next step? 

    By Guy Avtalyon

    How to follow your trading portfolio? Let me remind you! Without clear goals, there won’t be any way to really measure your success.

    A great, one-time win can look good, but this is not necessarily a barometer for your overall trading success. This can lead you to delusion very easily.

    The most important is to have a set of rules to manage any possible scenario. Even more important, you must also have the discipline to follow these rules.

    This means you MUST follow the trading portfolio.

    How to follow a trading portfolio

    Never, but remember NEVER  in the heat of battle throw out your own rules and not play by ear. That usually finishes with disastrous results.

    Did you ever ask yourself how professional traders see the market differently?

    So, what exactly you have to do?

    1. Do not create excuses to break the rules.
    2. Separate your planning from your execution.
    3. Lower your losses according to the plan.
    4. Always make your profits run according to plan.
    5. Skip your emotions.
    6. Focus on trading well.
    7. Be patient. Do not rush with trade.
    8. Predict the future, but trade in the present.

    These are just general rules for each trading.

    But truth is that you bought a billion altcoins and got yourself into a thousand ICO’s and now you’re not even sure how much money you have. 

    Is that correct?

    So, you need a system to follow a trading portfolio in real-time, on many platforms. There are plenty of free trading platforms you can use easily. You need one reliable with auto sync with exchanges and wallets and with the ability to add tax.

    And fast too.

    And you are on the non-technical side and know nothing about trading but you are a bitcoin and cryptocurrency enthusiast.

    Most of all, you are the owner, for God’s sake! 🙂

    Now, when the money on crypto started getting real you definitely have to treat it as an investment and keep track of its performance.

    You need software!

    What is the simplest way to follow a trading portfolio?

    The simplest way is to choose one of the platforms to follow the portfolio. But even if you are using some software you MUST have something on your mind when trading questions.

    You are not a kid and you know that you can expect losses.
    Losses are part of trading you have to accept them. If you have this on your mind, you will reduce emotional resistance when the time comes to do so.

    Do not take a trade unless you are willing to accept the risk that accompanies the trade, and it is the possibility of loss.

    Accept that you will lose money on some trades and try to take your losses easily when they come.

    That is the rule. But remember, don’t bend your rules! Stay stick to your portfolio!

    Of course only if your goals are realistic.

    Goals demands to be specific and they need to be achievable. Not just once, but consistently. When you think of goals, think long-term. That requires a certain level of patience that only comes with strong discipline. Once you have a long-term goal, you need a timeframe for its achievement.

    Avoid emotional trading

    You have to manage your emotions. When you have some doubts or you are unsure, get out! Never act based on greed or fear. But never give up!

    Do not expect to become an expert overnight! Trading takes time to build experience! I repeat! The best way to follow your trading portfolio is to use some of the advanced software and platforms.

    And it is smart to use Google Sheets.

    This online spreadsheet application is on a list of cryptocurrency portfolio trackers because it is one of the most versatile and customizable tools for cryptocurrency analytics. You can do what you want with it, to whichever extent you want.

    If you’re only tracking Bitcoin, simply set up a sheet with the GOOGLE FINANCE ticker. That’s how you will update BTC prices in a number of currencies instantly. Also, you can download one of the many available Google Sheets plugins which give you access to a plethora of cryptocurrency prices in real-time. The most popular one is Cryptofinance.

    Keep records of your trades and thought process, analyze your mistakes, then move on. But be a good student, don’t make the same mistake again.

    Improve yourself continuously. “Success consists of going from failure to failure without loss of enthusiasm,” said Winston Churchill.

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