How do I reduce volatility in my DIY portfolio?
The most common way to reduce portfolio volatility and lower investment risk is to diversify across industries, sectors, geographies, themes and asset classes.
Diversification can help to limit overall portfolio losses when one market, sector or asset class performs poorly.
When this happens, the other investments in your portfolio can help offset some of the losses and balance your average return profile, effectively smoothing out the volatility.
Creating a diversified portfolio also offers exposure to a broader set of opportunities, which creates more balance and less volatility in a portfolio.
What are fixed income ETFs?
DIY investors looking to diversify their portfolios with a liquid asset that generates regular income from their investments have three main options – invest in cash, buy dividend-paying stocks, or invest in bonds.
A bond is a debt instrument that a company can sell to raise money without diluting ownership over the business, which generates income for investors from the interest payments over a set period, with the principal amount typically repaid at maturity.
What are partial shares?
Buying a single full share of the valuable companies listed on the JSE like Naspers (NPN-JSE) or Capitec (CPI-JSE) can cost between R3000 – R5000. Adding a full share of the most valuable US stocks – such as Berkshire Hathaway B shares (BRK.B-NASQ) – to your portfolio can cost north of $500. For most retail […]
Start your DIY investment journey with an ETF
For those who want to embark on their DIY investing journey but are unsure where to start, exchange-traded funds (ETFs) offer a simpler approach to getting started, because time in the market is often more important than timing the market.
Trading Update : 21 February 2025
Semis are surging, investors are full-on ‘risk on’, Morgan Stanley thinks China’s looking good again, and Nike hopes Kim K can turn their fortunes around. But investors need to proceed with caution as a “retail frenzy” is brewing and copper looks like it could take a tumble. President Trump is also about to open a new front in his trade war.
Understanding inverse head and shoulders chart patterns
Within this toolset, a technical analysis is a valuable way to assess stocks to inform investment decisions and trading positions because it provides insights into market trends, price patterns, and potential future price movements based on historical or real-time data.
Understanding market momentum and its impact on stock trading
Markets and stock prices move up and down (or sideways) for numerous reasons and often follow this trend for a sustained period, which creates opportunities for traders to exploit the market or stock momentum.
Find out how you can get your share of the markets by understanding and leveraging market momentum as part of your trading strategy…
5 Steps to master trading psychology
Beyond the technical analysis, fundamental research and strategy formulation, do-it-yourself (DIY) investors and traders must also master their emotions to execute their plan and avoid making rash or impulsive decisions that can increase losses or miss out on opportunities.
Diversification strategies for DIY investors
Putting all your eggs in one basket by investing in single stocks increases the risk of potential losses, which is why professional and experienced do-it-yourself (DIY) investors believe that diversification is a fundamental element required in every considered investment strategy.
Common trading mistakes
More retail investors are taking a do-it-yourself (DIY) approach to stock and currency trading to get their share of local and global markets through online trading platforms like Clarity, by Investec. There is no universal risk-reward ratio that applies to all trades in isolation, and the approach applies to trades executed with or without margin.