Portfolio project
Forces of supply and demand are the once which govern the price of securities in the
financial markets. The main purpose of the financial market is that corporations use the
primary market to raise funds for their investment from investors and a secondary market,
which allows investors to sell and buy their investment to reduce risks involved with it by
liquidity maintenance in the system. In order for investors to gain more from the stock
market, they must build portfolios to diversify investment risks and they must be risk-takers
to gain profit from their investments.
Goals
Just like any of life’s endeavours, before becoming a successful trader requires goal setting, that’s
why I with my own efforts and with the research of previous market situations used to set own
valuable goals. Unfortunately, many people jump right into trading without giving the first thought
to where they’d like their new found profession to take them.
These are the goals I had set before.
I’ve tried to focus on the process not the results
Outline my daily routine because some factors direct affect our trading such as the strategy
you utilize while others are more indirect like your daily routine.
Construct a process or a procedure for analysing market conditions
Developing patience by limiting screen time can effect more than anything.
To learn various aspects of market
To point out effective and non effective points
Understand how the company’s shares show variations
Getting more profit from my investment
Objectives
The aim of venturing into the financial market to invest the lifetime savings of my amount in
securities with high and low risks for higher returns. Quick returns investment was required to
finance my short-term goals, which in turn required a financial decision on which securities to
include in building profitable portfolio, furthermore, in the financial market, the golden rule is that
the riskier an investment is, the higher returns which required me to take high risks for higher
returns in the short-term
FX traders works in a variety of environments to grow profits through the process of buying and
selling of foreign currency or products. There should be the set of formal goals and a list of well
defined objectives to grow with the market.
Liquidity: this is the main work force for any kind of market and when it comes to the Forex market
it is the most financial market in multiple countries so by focusing on liquidity helps be grow my
beneficial circle
Trading Time: the most important point is to note that the market remains open 24 hours a day
(expect weekends) acknowledging the necessity of the traders. It means one should have to focus on
what he/she purchased
Focus: Only in the US stock market there are above 40,000 stocks. There are only 200 or some more
commodity markets, besides 7 major currencies is used for making 80% for all trading can give one a
good benefit. So focusing on other stock shares could be as effective as you put your interest on
them
Constraints
Diversification refers to portfolio strategy, which is designed to decrease risk exposure In the
financial market by combining a range of investments like bonds shares, and real estate for long-
term returns. In Order to build a portfolio, stocks are a must investment to include since it is risky
but with the high return if well invested and other securities like bonds have low risks. Prudence was
to select the following sectors for investment, which include U.S/ treasury, Technology sector,
telecommunication, and investment banks and the investment was allocated as follows futures 4%
stocks 70% bonds 20% and cast 6%.
There is a small group of people are available to trade full time. If we look on the opposite side the
part time traders trading sporadically throughout a small portion of the day create missed
opportunities to buy and sell. There is a set of constraints that could effect
There is a huge volume, representing the largest asset class in the world leading to high
liquidity.
This is a geographical dispersion
Its continuous operation 24 hours a day
Variety of factors that affect exchange rates
The low profit margins compared with other markets of fixed income
Portfolio Performance
After disposing of some of the initial investments, the portfolio remained diversified with a
profitable investment. Investment in S&P 500, Sep 2019 futures were stable with promising
returns. After a few days of investing in it, returns were high and steady; the main reason for
it is the maintenance in the portfolio. JPM was the be performer among the four companies
invested In it is shares. APPL and AT&T. Inc. (T), the performance was not good, however,
they base promising high returns in the future. The common stocks from the three companies
were having a promising future, retaining them in my portfolio for the long-run. There was a
major change in Euro mostly there index rates fells from the original values, Euro give us a
loss at the end of results.
