Trade your plan, plan your trade

If I have 1 million, I will consider 2 levels:
1. Due to the dual needs of safety and profitability, the combination of risky assets and risk-free assets should be considered. For safety, risk-free assets must be combined, and risky assets must be combined for profitability.
2. Consider how to combine risky assets.
Since any two asset portfolios with poor correlation or negative correlation, the risk return obtained will be greater than the individual assets. Therefore, continuous combination of assets with poor correlation can keep the effective frontier of the portfolio away from risks.

Based on the principle of risk diversification, capital needs to be dispersed to different investment projects; in specific investment projects, the asset needs to be diversified to make the proportion just right. During the current global epidemic, inflation will inevitably occur in an environment where central banks of various countries implement QE (printing banknotes), issue treasury bonds, and stimulate consumption. $Coinbase (COIN.US)$ $Apple (AAPL.US)$

One point is very important, don't lie to yourself, your diversification only diversifies the risk of buying a stock, and does not evade market risks. Moreover, it only mitigates risks. Market index ETF are highly correlated with market weights; industry index ETFs can ensure that you don't miss the rapid growth of the industry, but there are still risks. It is even more bizarre to buy a lot of funds in a mess. If you take the time to list the stocks held in their last quarterly report, you will find many overlaps. $Dow Jones Industrial Average (.DJI.US)$

General investors, the most common investment is stocks and funds. Needless to say, stocks gain profits when they rise and bear losses when they fall. There are no risk aversion measures, which is equivalent to gambling. Funds are less concentrated than stocks, and it seems that the risk is diversified.

Now, do some asset planning. I am a medium-risk investor and hope that the annualized return is over 30%:

20% must be set aside for a rainy day as liquid assets.
30% are invested in stocks to buy companies that you like with high potential and high growth.
30% buy Bitcoin, I hope to realize the freedom of wealth.
15% buy fund investment, gain steady income.
5% play options, a small amount of money is trying a different kind of highly leveraged investment.
$Tesla (TSLA.US)$ $Amazon (AMZN.US)$ $AMC Entertainment (AMC.US)$

Investment is risky, and you need to be cautious when entering the market. I will set stop-loss points for various venture investments, and leave without hesitation when the point is reached, so as to avoid unlimited investment.

Next, I will show you my portfolio. In the US stocks, my configuration is as follows. The following are the targets I spent a lot of time choosing. I will also adjust the portfolio position changes in real time in the future:

In short, there is no standard answer to asset allocation, there is no best, only the most suitable.

Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more