Personal Investing Portfolio

I started managing a personal investing portfolio 3 years ago and have been actively trading securities since then. My portfolio currently holds a trailing twelve month return of 81%. My motivation for managing my own portfolio stemmed from the fact that you can learn more about the market from trading it than you can by simply following it. In this article I will share my experience. 

Portfolio Management Strategy 

My portfolio management strategy changes quite frequently as I learn more about the markets. The main reason I'd alter my strategy is because I've changed my risk tolerance or general sentiment on the market. Regardless of my current strategy, I always tend to follow these basic steps when managing my portfolio:

 

The assets I generally hold are a mix of fixed-income securities, stocks and more recently, I've been experimenting with options. I always have a set of simple rules to follow when rebalancing and adjusting my asset mix. The first being to never put too many eggs in one basket, I always strive to diversify across several industries which show some variance in their cyclical patterns. Some industries I've tended to favour in the past include Utilities, Information Technology Financial and Communications.

 

1. Determine Objectives and Constraints

2. Design Investment Strategy and Policy

3. Develop the Asset Mix

4. Selecting Securities

5. Monitor Market and Economy

6. Evaluate Portfolio Performance

7. Rebalance Portfolio

The stocks I choose to include in my portfolio generally come from my watchlists. I group my watchlists into four categories of risk tolerance, Venture, Conservative, Growth and Speculative. When selecting securities, I can draw stocks from these categories, generally choosing growth stocks and sometimes having fun with investing in venture or speculative companies depending on my risk tolerance at the time. 

My market activity is far from optimal but I learn more with every trade I make. Some areas I've experienced improvement in are bettering my market timing, developing better asset mixes and gauging my risk tolerance to a better degree. 

vshakvarma@gmail.com

(647) 898 8177

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