Everyone will have a slump in their investment portfolio at some point in time. It doesn’t matter if you are an expert investor or just getting started. It is all part of the process. Here are some smart investment techniques to turnaround your investment portfolio.
10 Smart Investment Techniques to Turnaround Your Investment Portfolio
Investing money is paramount to building wealth. You are guaranteed to hit highs and lows in your investment process. However, you must stick with your plan for success. Follow our investing money section to learn more investment techniques like the ones described below.
Staying invested is what you need to do. Continue to invest your money, but do it smarter. I created a dividend investing book to help you get started investing for financial freedom. The book is titled Dividend Investing Your Way to Financial Freedom.
You can download a sample of the book here:
One of the most attractive features of binary trading is its relative simplicity. Unlike many forms of forex trading, binary options take a yes or no, ‘higher or lower’ position regarding the value of a financial asset, and offer a fixed profit or loss from the start of the process.
Within this framework, there are many variations and subtleties, of course, but the clarity of the basic principle is something which attracts many investors who may find other forms of currency trading somewhat daunting.
I use Personal Capital to track all my portfolio cash flow and diversification. It’s completely free to use and has an amazing interface. I suggest you give it a try.
10 Smart Investment Tips to Use to Dig Yourself Out of an Investment Slump
Let’s dive into 10 of the best smart investment tips to help dig yourself out of an investment slump. What this doesn’t mean, however, is that profits are guaranteed any more so than in any other type of trading. Whether you’re a newcomer to binary trading or have been doing it for a while, it’s pretty much inevitable that you’ll experience a slump in investment returns at some point.
When this happens, it’s vital to return to many of the first principles which initially create the foundation for a strong trading strategy. Taking the following tips on board will help you to do that:
Look at your broker
You need to choose your broker very carefully, as the popularity of binary trading, particularly amongst those new to the currency markets, has led to vast numbers of brokers setting themselves up, all apparently offering the best platforms, highest ratios of pay off and most appealing asset portfolios.
Finding the right broker isn’t just about knowing that an individual is reputable, it also involves reassuring yourself that they take an approach to the markets that match your own strategy. Sources of information to tap into include fellow traders, local regulators and the reviews published by sites like binaryoptionsexpert.net. Even if you’ve been successful in the past, a marked slump in profits may signal that it’s time to change your broker.
If you’re a newcomer to binary trading it should go without saying that you need to practice. The lure of easy money (although there’s really no such thing) and simple trades (another thing that doesn’t actually exist) means that some people are tempted to start trading without getting to grips with the basics.
This is a mistake, and the same applies if you’re going through a slump in returns. Stop chasing your losses for a while, find an effective demo that allows you to trade in virtual money and go back to practicing simple, one-hour options as a means of getting out of whatever bad habits have caused your downturn in fortunes.
At the very least, a few successful virtual results will start to convince you that you haven’t lost your touch entirely.
Study the Patterns
Claiming to be able to predict the fluctuations of currency markets with any degree of accuracy is more than a little rash, but there are tools available that make it much easier to gauge what a currency may be about to do in the coming minutes, hours, days or even months.
Chief amongst these are candlestick charts, a highly visual alternative to bar charts which originated in Japan and manage to represent the fluctuations of various currencies in a visually dynamic manner.
Take the time to study various candlestick charts – particularly if you can find examples which preceded volatile market conditions – and learn to recognize the patterns that signal the kind of shift that you could profit from.
As stated earlier, the basic principle of binary trading is pretty simple, but within that principle, there are many options to pursue. In addition to the range of assets that you might be offered by a broker, there are also options such as touch or no touch, boundary and ladder trading.
While experience may have encouraged you to experiment with some of the more complex trading options. Look at markets outside of the more well-known assets, a slump is a time to focus on the basics. This means sticking to markets you know well, and traditional trades such as Put/Call. If you are focused on Dividend Kings and had success, stick to it.
If you want to limit your risk, use fundamental analysis. Here’s how to read financial statements.
Retune Your Money Management
Although the various outcomes of trade are fixed at the time you make it, it’s still vital to have a strong money management plan in place if you want to keep any loses down to an amount you can easily afford. Decide what the size of your account balance is and don’t be tempted to top it up from outside sources to counterbalance a losing streak.
Similarly, don’t be tempted to chase losses by doubling up on investment, as the amount of money leaving your account can soon run away from you. Hitting a losing streak is inevitable from time to time, but adjusting your money management strategy – perhaps by lowering the percentage of your account balance you’re willing to risk on a trade – is one means of ensuring the streak doesn’t cause lasting financial damage.
A tool like Blooom can help you optimize and analyze your retirement accounts to ensure you are managing your money effectively. It’s free to use to get a checkup on your retirement accounts. Try it out!
Stick to Your Strategy
You can develop a strategy on your own. Through experience and practice, you can adopt a ready-made strategy from elsewhere. The point is that you have to have a strategy and that going through a slump in returns is just the moment when you need to stick to that strategy.
This may seem counter-intuitive, given that the strategy isn’t providing the returns you want, but the alternative is allowing your emotions to come to the fore. Stray away from what worked previously can make matters worse.
Since these emotions are likely to be anger, disappointment and perhaps a touch of panic, a fixed strategy which can be adapted to suit changing circumstances is the better option a hundred percent of the time.
Watch for the Signs
Even the most experienced trader needs all the help that they can get, and an alert service which will signal potential shifts in the binary marketplace could make all the difference. You may have got by without investing in one until now. A slump in returns would indicate that you’re not spotting everything you ought to be spotting.
In many ways, longer-term trading and intensive studying of tools such as candlestick charts can make it more difficult to spot one-off events that emerge from the more general patterns. A reputable alert service which uses algorithms to detect the direction of travel of an asset could make all the difference. Use a tool like TradingView to become a charting expert. Read more on our TradingView review to learn more.
Take a Long-Term View
We all probably have a different take on what constitutes a slump, and one person’s complete collapse might be another’s temporary blip. If you do experience a downturn in fortunes it’s imperative that you don’t panic.
Make sure of this by always maintaining a longer term view of your strategy and money management. You should be working to a plan which lasts longer than a single day, week or even month of trading. It’s vital not to let panic about short-term losses force you to deviate from this plan.
You can use a tool like Motley Fool Stock Advisor to get new investment ideas sent to you instantly. Read more about our Motley Fool Stock Advisor Review to learn more.
You’ve never met the trader who never made a loss, and there’s a reason for that – he or she doesn’t exist. Losses are a part of trading, and the higher returns of binary trading come with a slightly higher risk. The key to ensuring a run of bad results doesn’t turn into an account destroying slump is not to panic. Don’t chase after bad results.
If you’re having a bad day, week or even a few hours then accept it, close down your platform and work on a few of the tips outlined above. At the very least, you’ll return to trading only when the emotions of the initial moment have begun to subside.
Follow the News
Although binary traders gain a lot of insight from specialist tools such as candlestick charts and alert systems, it also pays to keep a careful eye on something as basic as the world news. Political events, statements and even tweets can have a massive impact on the fluctuations of the currency market.
A reputable source like Bloomberg explains, for example, how President Trump’s trade policies are likely, in the longer term, to drive the value of the dollar lower than is historically the case. Taking ‘real world’ evidence of this kind on board could play a huge role in seeing the trends that are worth investing in long before anyone else does.
Take your own opinion with investment news because you need to be able to keep an open mind. Don’t let the news sway your investing decisions. Use it to make an informed decision.
Conclusion on Smart Investment Tips to Consider
These smart investment tips are a great way to take your portfolio in the right direction. Consider these investment tips on how to start investing your money. Here are some key takeaways with smart investing:
- Never stray away from your plan.
- Stay invested and stay focused.
- Never stop learning.
- Take a step back and look at the bigger picture.
Check out my stock portfolio infographic to help you get started with investing if you haven’t yet. What do you think about these smart investment tips? Please let us know in the comments below. I’d love to hear from you.
Related Investing Resources:
- Free investing calculator to help you develop a plan for investing in the stock market
- Best robo-advisors compared to help you choose the right automated investing platform
- Use a 401k optimizer to save on retirement fees
BinaryOptionsExpert.net is a comparison site for binary trading brokers. They serve to educate the public, enabling them to make an informed and educated decision when selecting a binary trading broker site.