Pablo Soria de Lachica joined the BForex currency trading firm as director of business in 2008. Before joining the company, he earned his degree from Unitec in Mexico, where he focused on market research, market analysis, and other topics related to investment. Pablo Soria de Lachica complements his master of business administration (MBA) with years of practical experience in software development and investing.
The wisest investment advice available to investors of all skill levels is to invest in markets they understand and follow. However, a number of other tips can enhance that golden rule. For instance, those who invest in a mutual fund should invest according to a schedule: by investing at the same time each month, investors acquire more shares for less money rather than doing so during a flux period when shares have spiked in cost.
As important as it is for investors to stick to markets they know, they should set aside splurge money to capitalize on next-big-thing trends. Investors should allocate 5 to 10 percent of their portfolio for those can’t-miss investment opportunities—just enough to build on the investment later should it take off, yet not so much that their portfolio will suffer should it bottom out instead.
Finally, investors should set aside one day every year for rebalancing, pulling back on investments that have not produced much gain and investing more in ones that have shown growth.