Explore BrainMass

Investment Portfolio

Whether you have developed your own investment portfolio or are participating in a mutual fund, you will naturally be quite interested in the value of the individual securities or the fund itself.

Many people monitor the market (and their specific securities) at least daily - some several times each day. Others only review the value of their investments periodically. Some investors move in and out of specific securities (buying when prices drop and selling when prices rise)and try to anticipate market movements to minimize losses and maximize returns. Others just establish a comfortable mix of investments and stick it out - staying in the market for the long haul.

Obviously, which approach you take is a matter of your personal preference and your comfort level with risk. In your opinion, which approach is the most effective? Why?

Solution Preview

This is really an opinion and no answer is wrong but personally I choose to move in and out of specific securities. I do this for several reasons:

1. Sometimes you can predict which way the price will go by certain announcements made by the head of the company and avoid dramatic looses or make a substantial amount of money by buying new securities that may rise ...