n be a windfall of more than lucrative income. However, the stock market price is not without risk. Before rushing headlong into it, it is always important to keep in mind that financial investment in the stock market involves risks of losses. Contrary to what novices might think: luck has nothing to do with it in the majority of cases. It is therefore advisable to take maximum precautions in order to build an investment portfolio that is stable and competitive.
Before creating a mom database stock portfolio, it is interesting to understand what it represents. A stock portfolio is the sum of all the investments that are held by a professional or an individual. This list of values can include different investments including:
Actions;
Bonds;
Investment funds;
Derivative products…
The term portfolio is a legacy of the past. Indeed, if today, you only need an internet connection to follow the price of your securities live, in the past, financial securities were delivered in the form of paper documents. In order not to lose them, they were grouped in a portfolio. The term stock portfolio has therefore remained.
The importance of setting a goal before investing
Investing in the stock market is not like buying a lottery ticket! Even if some investments may seem interesting, it is essential to stick to the goals you have set for yourself. Indeed, having planned a SMART goal allows you not to get carried away by emotion and make decisions that are not aligned with your needs.
For example, if you are investing for retirement, you will need to choose assets that are low risk and will provide you with regular income. If you are investing for a short-term project, you will be able to take more risks and invest in assets that have the potential to offer higher returns.