Let’s face it; there’s a thin line between investing and gambling. Even if you are “investing” in the stock markets, but if you don’t know what you are doing, then you might as well play some Black Jack at the local casino. Not only the casino is more exciting, you also get free drinks. Most importantly, you are probably getting better odds at the casino than “investing” in the stock markets without having any education. Thankfully, there are plenty of ways you can educate yourself and increase your odds of winning. In this article, we are going to cover Oxford Club’s top four investment advice.
Have A Balanced Portfolio
Oxford Club suggests that you keep a balanced portfolio. For the club, a balanced portfolio means keeping a portfolio with different risk levels from low-risk, low reward to high-risk, high reward. They also suggest that your portfolio should employ a form of pyramiding in which the base should consist more slow but safe investments. The Oxford Club also recommends that you diversify your portfolio in many asset classes like stocks, bonds, commodities and options for protection.
The best investors are not the ones who can buy the right time, but it’s the investors that can buy AND sell at the right time. Oxford Club suggests that before you even think of buying, you already have a formulated exit strategy.
Another critical aspect of investing that is often ignored is the position sizing. Even if you have a “buy” signal, not all of your “buy” signals have the same quality. It’s only smart that your position size should reflect the quality level of your buy signal.
Most investors focus too much on the price and charts that they forget about the fees. Oxford Club suggests that never skip research on the different ways of bringing your broker and administrative fees down as it can easily eat through your profits.