Create A Well Diversified Portfolio with U.S. Fractional Shares
Create A Well Diversified Portfolio with U.S. Fractional Shares

Create A Well Diversified Portfolio with U.S. Fractional Shares

Wed, Apr 12, 2023 11:32 PM

Diversification is the cornerstone of a successful investment strategy. Like building a LEGO, it takes Lego pieces of different colors (stocks) and sizes (fraction or whole units) to build your Star Wars Millennium Falcon.

Here’s some tips to help you build that Millennium Falcon a diversify portfolio combining fractional share trading and dollar cost averaging.

 

 Start Trading       

 

Step 1: Identify what you’re trying to build. (I.e.: your investment goals and risk tolerance)

How much risk are you’re willing to take? This will help you decide which type of assets to invest in and how much of your portfolio to allocate to each goal.

 

 

Step 2: Determine your building style

Don’t get too excited to start building immediately. Take the time to design your GAME PLAN.

Decide what kind of investments you want to make and the types of LEGOs that you will need to build your Millennium Falcon portfolio - stocks or exchange-traded funds (ETFs).

 

 

Step 3: Set a budget

Like LEGO sets it can get expensive so it’s best to set a budget before you start investing.

Determine a budget so you know how much you are willing to use on investments, how much you are willing to lose and how much you will top up monthly to add a dollar cost averaging strategy.

 

 

Step 4: Stay Informed

Like when building your Millennium Falcon and you read the instructions first, do the research first, ok?

Access resources you have – trading tips, investment strategies, market news and trends (that may affect your portfolio) from our analyst reports, ideas from the team from The Motley Fool 🤡 or our RakuTalk webinars to get the latest tips and tricks.

 

 

Step 5: Be disciplined

STICK to the plan, budget and schedule you set at the beginning.

 

 

Step 6: Monitor your portfolio regularly

Review your portfolio regularly to ensure it aligns with your investment goals and risk tolerance.

Consider rebalancing your portfolio if your allocations/diversification drift too far from your desire allocation or when market takes a dip.

 

Remember, to build a diversified portfolio, try to include different sectors and make sure to keep an eye on your investments as well as adjusting your portfolio as needed.

 

And when market starts to dip, adopt a dollar cost averaging strategy. That way, you’ll be able to MASTER the art of trading and lets you leverage on U.S. Fractional Shares trading!

 

While building a diversified portfolio takes time and regular investing, don’t give up! The hard part was getting started.

 

Have You Added a US Trading To Your Cash Upfront Account?

 

Just click the US flag on your dashboard, answer a few questions, and you’ll be approved within 3 days. While it might seem long before you can start, it’ll just give you time to figure out what to trade.

 

 Opt In For A US Account       

 

To get started, here’s some resources to help