You’ve likely heard different theories about how to balance your portfolio safely. A diversified portfolio is a huge asset, as I tell my Nova X-Report subscribers, but there are different ways to do it. And some of the information floating around out there is incorrect.
It’s great to want radical technology profits. We all want to make money in the technology sector. In fact, many people view technology as the only vehicle for making money in the stock market.
Of course, that’s not true. Lots of sectors experience enormous gains and produce terrific profits. That’s where balance comes in.
Even if you’re not a Nova X-Report subscriber, you can still benefit from some of the Nova X-Report lessons I’ve shared about how to balance your portfolio safely.
What Does a Balanced Portfolio Look Like?
Imagine this scenario. You’ve just landed your dream job, which pays three times more than you’ve ever made in your life. Surely, you’ll keep this job forever, and as the money rolls in, you start buying things you want.
A new house, a new car, a bigger television set, perhaps a boat for down at the lake.
To extend the boat metaphor, you’ve caught a good wind. The money continues to show up in your bank account every two weeks, so you keep buying stuff.
Then you lose your job. Suddenly, you don’t have any income at all, and you haven’t saved responsibly. In short, you’re in trouble.
That’s the danger of an unbalanced portfolio. As I tell my Nova X-Report subscribers, you can’t assume every bullish pattern will continue. What goes up will eventually come down, right? And if you want to earn radical technology profits, you can’t stick with a position forever.
Furthermore, you can’t depend on one security to keep you afloat. That’s like assuming you’ll have the same job from the day you graduate college until the month you retire. It’s not reasonable to assume.
You have to prepare for the layoffs — or, in the case of the stock market, the sudden plunges you weren’t expecting and waited too long to experience.
Through my Nova X-Report publication, I share tons of tips and advice for investors who want to balance their portfolios safely. Those who listen to experience extreme gains at minimal risk. That’s exactly what I want for you.
Let’s look at some of the most important Nova X-Report lessons on safe portfolio management.
Understand Your Investor Personality
Everyone has a different investor personality. Some people like to play it extremely safe, while others predict big rallies and take on huge positions. Some investors like to have lots of irons in the fire; still others like to focus on one trade at a time.
If you know yourself, you can keep your portfolio balanced.
Let’s say, for instance, that you like to keep multiple plays going at the same time. There’s nothing wrong with that, but if you don’t handle it well, you could suffer huge losses.
You need a good system for watching each play carefully and noting any abnormalities. You also must set aside sufficient time to research each play before you make it.
Furthermore, you want a healthy balance of different securities. If you’re all-in on the tech sector, you’re likely missing better opportunities in healthcare or pharmaceuticals or finance.
Keep Emotion Out of the Equation
Emotional trading is almost always bad trading. You’re likely to take to certain stocks for personal reasons. Maybe you have a friend who works at Company A, or perhaps you’ve always had a good experience when buying products from Company B.
Those aren’t good reasons to buy shares of either stock. At least, not if you don’t have other reasons.
It’s fine to support a company and like its business practices, but radical technology profits come from smart trading. If you’re blinded by emotion, you’re likely to lose money. Remember: It’s always about money when it comes to investing.
A properly balanced portfolio, as I tell my Nova X-Report subscribers, is one that’s backed by data and solid information. If the technical and fundamental analyses don’t make the stock a good pick, let it go.
Apply Your Strategies Consistently
Consistency is highly underrated in the stock market. My Nova X-Report subscribers report incredible gains when they stick to a system that works for them.
If you’re inconsistent, your portfolio gets thrown out of whack. You forget why you made specific plays and when you planned to exit your position. You wind up putting too much money toward one investment instead of diversifying that cash to protect yourself and mitigate risk.
Of course, this doesn’t mean you should continue following a pattern that doesn’t work. If you’re consistently losing money, it’s time to change your strategy. You have to know when to give up on something so you reduce risk and find a better way to build your wealth.
That’s why paying careful attention to your portfolio becomes paramount. You might follow a specific percentage system, though I don’t think that’s necessary. It’s more important to make sure you’re investing in a healthy range of securities, both for short- and long-term profit.
Balance Growth and Income
There are two primary objectives when it comes to investing: growth and income. If you’re chasing radical technology profits, you’re likely interested primarily in income, but you shouldn’t discount growth.
Let me explain this more clearly.
A growth objective means you want to grow your wealth over time with long-term investments. It refers to the stocks and bonds and other securities you hold, often until a set date, such as when you’re getting ready to retire.
In other words, you aren’t interested in chasing profits now. You’d rather wait and collect your wealth in the future.
Income investors want cash now. They’re often day traders who make several trades per day, usually lasting between minutes and hours. They might hold stock overnight or even for a couple weeks, but they’ll cash out as soon as they get an opportunity for massive profit.
It’s kind of like a job that offers both salary and stock options. The salary represents your income — what gets deposited into your checking account every payday — while the stock options represent growth.
A balanced portfolio doesn’t contain just income investments or only growth investments. There’s a mix of the two.
Diversify Outside Your Sector
If you’re familiar with my work, you know I don’t discriminate. I might be known for radical technology profits and investing in tech through the Nova X-Report, but I don’t pass up an opportunity just because it lies outside my primary sector.
For instance, a few years ago, I told my Nova X-Report subscribers to invest in pot. That’s right. I saw huge growth opportunities for several companies in the marijuana industry, so I suggested investing in them.
My subscribers made five- and six-figure profits from that tip. You can’t get much farther from tech than pot.
I’ve also come down hard on crypto recently because it’s poised to go big. Cryptocurrency is the future of the finance world, and companies in this space are likely to see huge increases in stock price.
That’s yet another opportunity to diversify.
Subscribe to the Nova X-Report
Regardless of your investing personality or your experience, subscribing to the Nova X-Report can be an excellent investment in your future as a trader. You’ll learn how to better manage your portfolio and when you need to diversify more.
Your subscription comes with stock tips via text alert, tons of free resources, and other goodies to make you a better investor. And my years of experience in the field back every suggestion I make, so you can trust that I’m not just promoting a stock for my own personal gain, like many in my industry.
You know that you want to make money in the stock market. Who can blame you? But if you don’t balance your portfolio safely, you’ll reach a point where your losses outweigh your gains.
That doesn’t mean you’ll go broke, necessarily. However, you’ll miss out on fantastic opportunities and put too much of your money into one thing. You’ll also find yourself more likely to invest emotionally and to lean too far toward either growth or income.
You need balance.
My Radical Technology Profits publication is a great opportunity to learn how to put your money behind great stocks in the tech space. It’s a hugely popular newsletter that continues to grow by the day.
Just remember that your portfolio should include some diversity. Sign up for the Nova X-Report to balance out what you learn through Radical Technology Profits.