DIVERSIFICATION AND RISK MANAGEMENT

With this article I want to finish the series of posts that have dealt with the correct management of risks in our stock investments.

BUY VALUES OF DIFFERENT COINS AND COUNTRIES FOR GREATER DIVERSIFICATION AND RISK MANAGEMENT:

It is possible to diversify the shares of our investment portfolio also by buying shares in different currencies. We can buy securities from any country in the world. A good strategy would be to choose two of the best actions in each country, and choose countries with economies as different as possible.

For example: The two best shares of Germany, Japan, the United States, Chile, India, Brazil, South Africa, Australia, Russia. As you can see these countries belong to different world economic zones.

Very important when we go to invest in foreign currency is to make a hedge of the currency in which the investment is purchased. If we do not cover the currency we will be exposed to the fluctuation of the currency market so that in a few months or years we could be losing a lot of capital due to the change of the currency.

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DIVERSIFICATION WITH BULLISH AND BEARISH ACTIONS

Successful investors like to have bullish and bearish positions. The reason for this is because when a market turns and changes trend many of the positions are going to close, but if we have previously anticipated this event holding both bullish and bearish positions, we can probably keep many of our shares that will continue to deliver very good benefits .

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