Risk and return of your investments

Risk and return of your investments

Risk and return of your investmentsHow do you create your investment portfolio ? and how do you plan the Risk & return of your investments optimization ?
Risk and Return goes hand in hand, high risk often mean high returns and aiming for high return often mean high risk.
You have to deside for your self, the risk factor you want.
Can you afford to loose entire investment ? or are you a more safe investor ?
Are you investing your hard work earned money and happy with 5-10% interest per year or are you a gamler and hoping for a 100% return ?

I am daytrader, Swing trader and long term Investor and as solid Investor, I am a safe driver and I am truely satisfied with profit on 20-40% per year, because no hugh risc is taken.

Risk and return of your investments

My Portfolio for 2017/2018 looks like this :
Real estate : 40%
Gold/Coins/Art : 10 %
Stocks : 50%

I will leave my Real Estates and Gold/Coins and Art out of this, and it was just to give you an example of how a Portfolio can look like. Just have in mind, in case you invest 100% in Stocks you are vulnerable and could be in a high risk area.
My recommendation will always be to spread your investments on more than one type of investment, like Stocks and real estate etc.

If we look closer at your Stock Portfolio, you can split that into different markets and countries, so you do not end up with a Portfolio with only US Biotech. stocks.

I like to have a mix of US, German, British, Japanese and China stocks and a mix of sectors like Technology, Auto, Financials stocks. Ofcause it is not possible to keep them mixed all the time and I normally have maybe 20% in case to do supplements if the trend was against me.

One sector I avoid is Biotechnology… tried it before with big success BUT also big looses and as a Technical Analytics this sector is unpredictable and dangerous. So keep this on out from your Portfolio if you are a Technical Analytics fan 🙂