Stock trading is generally assumed to include the buying and selling of stocks in the financial markets in the short term. However, when it comes to building wealth, this practice is not sustainable and will never work for an investor in the long run.
Kavan Choksi- an insight into trend investing and its pros
Kavan Choksi is a well-known investor, wealth, and business management, consultant. He has worked strategically with several companies dealing with fast-moving consumer products, the luxury markets, and the retail industry. He leverages his extensive experience in the fields of economics and finance to help his client earn lucrative returns from their investments. Besides the above, he also shares inspiring quotes online, provides advice on financial well-being, and often speaks about his personal views on the financial markets and global economy. For example, he guides investors on how they can buy stocks from Amazon and earn lucrative returns from their investments.
Examine market patterns before making investments
According to him, when it comes to wealth building in the stock market, it is significant for the potential investor to focus on something called “trend investing.” This implies the practice of examining a single stock or a group of stocks that are going up or down in the same fashion. For instance, if stores in the technology sector are going on an upward trend, this pattern should urge you to make an investment in them.
Focusing on trend investing for profits
Again, while applying this practice, he adds one should also go back into the past to identify trends. He recommends a potential investor go as back to 1970 to examine how companies have done and what are their cyclical trends to make your own conclusions about investments.
Besides the above, in order to focus on smart investing, he also states that you should maintain liquidity in your stock portfolio as well. This means you have cash in your portfolio that has not been invested but can be deployed to make an investment at any time. He states that he has always kept 5 to 10% of his individual portfolio in money so that he can optimize emerging market profit opportunities.
It would help if you focused on the diversification of asset classes to make profits
Business and finance expert Kavan Choksi also recommends that diversification of asset classes is the key to smart investing. This implies not placing your money in one single stock or sector in the financial market.
This step will save you from incurring losses with your real money, as if the performance of one asset class fails, you have the others to bank on. At the same time, you should be equipped with the proper financial literacy and knowledge to make sound investment choices. Last but not least, he adds that there is no safe investment without risks. No matter what asset class you embrace, there is always an element of risk involved. However, with the proper financial literacy and knowledge, you are able to manage these risks and ensure you earn handsome profits in the financial market successfully!