Thursday, 23 July 2009

Investing Principle 1: Combining Strategies

Because of compounding, downside volatility costs you money.

If you are looking to smooth out returns, pick stocks with lower degrees of correlation (those that perform differently in the same type of market conditions).

Learn how to combine strategies to limit risk or enhance returns.

To maximise returns, give more weight to those strategies with the best historical track records.

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