What Is a Financial Portfolio?
A financial portfolio is a collection of investments that can include stocks, bonds, commodities, cash, and cash equivalents like closed-end funds and exchange-traded funds (ETFs). While stocks, bonds, and cash are often considered the core of a portfolio, there are no strict rules. Portfolios can also include assets like real estate, art, and private investments. You can choose to manage your portfolio yourself or seek the help of a financial advisor or money manager.
In the world of Forex trading, where currencies rise and fall like ocean tides, skilled traders aim not only to seize opportunities but also to protect themselves from the waves of market volatility. Enter portfolio diversification, a fundamental concept that plays a pivotal role in managing risk and returns across multi-investment Forex portfolios, and effective trader portfolio management, the art of strategically building and overseeing a diversified Forex portfolio.