How to build a strategy for your portfolio?

In today's financial marketplace, a well-maintained portfolio is vital to any investor's success. As an individual investor, you need to know how to determine an asset allocation that best conforms to your personal investment goals and risk tolerance. In other words, your portfolio should meet your future capital requirements and give you peace of mind while doing so. Investors can construct portfolios aligned to investment strategies by following a systematic approach. Here are some essential steps for taking such an approach.

Identify economic megatrends, or trends that are going to dramatically change economic behavior. Find winning companies, commodities etc. aligned with those megatrends. Buy stock in those companies. Or, look for Popular Investors who have the right strategy for you and copy their behavior. They will be happy to answer your questions and concerns. You will become, in a sense, their client.

• Overall, a well-diversified portfolio is your best bet for the consistent long-term growth of your investments.

• First, determine the appropriate asset allocation for your investment goals and risk tolerance.

• Second, pick the individual assets for your portfolio.

• Third, monitor the diversification of your portfolio, checking to see how weightings have changed.

• Make adjustments when necessary, deciding which underweighted securities to buy with the proceeds from selling the overweighted securities.

If you can't or don't want to build your strategy then eToro is just for you!

You will find people there, whose strategies you can copy with a few clicks.