{"id":9084,"date":"2022-12-24T16:44:25","date_gmt":"2022-12-24T08:44:25","guid":{"rendered":"https:\/\/slashtraders.com\/?p=9084"},"modified":"2025-09-29T17:45:32","modified_gmt":"2025-09-29T09:45:32","slug":"portfolio-management-stocks","status":"publish","type":"post","link":"https:\/\/www.slashtraders.com\/en\/blog\/portfolio-management-stocks\/","title":{"rendered":"2 Portfolio Management Strategies to Make Money Comfortably"},"content":{"rendered":"<p class=\"wp-block-paragraph\">A good way to gradually accumulate investment equity is by creating a portfolio management system. It can help you diversify your stocks and reduce investment risks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We use SlashTraders' official account as an example to share a few of our favourite portfolio management strategies, to help you generate consistent profits.<\/p>\n\n\n<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<span class=\"aljDjTrEhFPbwLs8tv6xNCapYA73BOw93ZP74JWqM6FnZpoue1k8d5qGcYTnGgzOHMmHi5URQLSCNfJ1V\"><iframe title=\"Make Money Comfortably With 2 Portfolio Management Strategies\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/LPN04KnIH8Q?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/span>\n<\/div><\/figure>\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Is Portfolio Management?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Portfolio management is a system that combines multiple types of trading instruments or invests in many different sectors or industries at once. This reduces the risk of exposure to any concentrated underlying.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">No matter which way the market goes, a diversified portfolio can reduce risks and become profitable in the long run.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Looking at <a href=\"https:\/\/slashtraders.com\/en\/performance\/positions\/\" target=\"_blank\" rel=\"noreferrer noopener\">SlashTraders' official trading account<\/a>, we have a portfolio of around USD 40k in net liquidity. Most of our account liquidity is used for long-term investments.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"370\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/12\/portfolio-1.png\" alt=\"Positions\" class=\"wp-image-9106\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">Most of our account liquidity is used to buy stocks for the long-term.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">When we find <a href=\"https:\/\/slashtraders.com\/en\/blog\/best-value-investing-stocks\/\" target=\"_blank\" rel=\"noreferrer noopener\">value stocks<\/a> or <a href=\"https:\/\/slashtraders.com\/en\/blog\/best-blue-chip-stocks-dividends\/\" target=\"_blank\" rel=\"noreferrer noopener\">high dividend-yielding blue-chip stocks<\/a>, we will buy and hold them for a long time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Within the USD 40k net liquidity, we use around USD 16k buying power to <a href=\"https:\/\/slashtraders.com\/en\/blog\/beginner-options-trading-strategies\/\" target=\"_blank\" rel=\"noreferrer noopener\">trade options<\/a> to take advantage of short-term market fluctuations. Depending on different technical analysis results we trade <a href=\"https:\/\/slashtraders.com\/en\/blog\/best-strangle-options-strategy\/\" target=\"_blank\" rel=\"noreferrer noopener\">short Strangles in neutral-trending stocks<\/a>, or <a href=\"https:\/\/slashtraders.com\/en\/blog\/bottom-out-stock-bull-put-spread\/\" target=\"_blank\" rel=\"noreferrer noopener\">sell Credit Spreads when we anticipate large volatility soon<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/12\/options-portfolio-1.png\" alt=\"Options Trading Portfolio\" class=\"wp-image-9125\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">40% of the capital is used in trading options to take advantage of short-term market fluctuations.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">You might be interested in why we have a ratio between stocks and options like this:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Stocks 2:1 options<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Options trading has much greater risks than stock investing, as <a href=\"https:\/\/slashtraders.com\/en\/blog\/what-are-options\/\" target=\"_blank\" rel=\"noreferrer noopener\">options<\/a> have a time limit to turn a profit when the contract expires, while a losing stock investment can patiently wait for the stock price to rebound.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So we limit the amount of options trading to reduce the risks of our portfolio, while using the stocks for long-term growth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Is Asset Allocation?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Asset allocation is spreading the risk of the portfolio by splitting the investment capital across multiple different stocks. Even when one stock crashes, the whole portfolio shall not suffer a lot.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Points to Asset Allocation<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Apart from buying <a href=\"https:\/\/slashtraders.com\/en\/tools\/best-value-stocks\/\" target=\"_blank\" rel=\"noreferrer noopener\">value stocks with huge Upside potential<\/a> and <a href=\"https:\/\/slashtraders.com\/en\/tools\/dividend-stock-screener\/\" target=\"_blank\" rel=\"noreferrer noopener\">high-yield dividend stocks<\/a>, our portfolio also invests in different Sectors, Industries and Countries, or even <a href=\"https:\/\/slashtraders.com\/en\/blog\/best-reits-to-invest-in\/\" target=\"_blank\" rel=\"noreferrer noopener\">invest in real estate<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"403\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/12\/asset-allocation.png\" alt=\"diversified investment\" class=\"wp-image-9111\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">Diversify our investment by purchasing stocks from different Sectors, Industries and Countries.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">If any Industry, Sector or a single Country goes into recession, our overall portfolio shall remain profitable in the long run.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><a href=\"https:\/\/www.slashtraders.com\/en\/pricing\/?utm_source=blog&amp;utm_medium=banner\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"971\" height=\"120\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/03\/slashtraders-trial-banner.png\" alt=\"slashtraders trial banner\" class=\"wp-image-7387\" srcset=\"\" sizes=\"(max-width: 971px) 100vw, 971px\" data-srcset=\"\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">What Is Rebalancing?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Rebalancing is when we readjust the relative sizes of the stock positions after the stock prices have changed. The act of rebalancing usually leads to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Selling high-value positions.<\/li>\n\n\n\n<li>Buying low-value positions.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How Rebalancing Works<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">The advantage of rebalancing is it helps us make systematic decisions on buying low and selling high. Thus <a href=\"https:\/\/slashtraders.com\/en\/blog\/dollar-cost-averaging\/\" target=\"_blank\" rel=\"noreferrer noopener\">reducing the emotional toll on trading<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the next rebalancing cycle, we can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sell high market value positions like VOD, BACHY, and PNGAY.<\/li>\n\n\n\n<li>Buy low market value positions like TCEHY and BABA.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"403\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2022\/12\/rebalance.png\" alt=\"rebalance\" class=\"wp-image-9112\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">Sell stocks from high Portfolio positions and buy stocks from low Portfolio positions to rebalance the portfolio.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The relative values of each position should reset to the original setup after rebalancing, so the portfolio will not lean heavily towards any single stock, and diversify the risks.<\/p>\n\n\n\n<p class=\"has-ast-global-color-4-background-color has-background wp-block-paragraph\"><a href=\"https:\/\/www.slashtraders.com\/en\/blog\/slashtraders-vs-sp500\/\" target=\"_blank\" rel=\"noreferrer noopener\">SlashTraders vs S&amp;P 500: 450% Outperformance, Verified Trades and How to Copy Every Alert<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Good portfolio management strategies can diversify your stocks and reduce risks. We share our favourite portfolio management strategies that generate consistent profits.<\/p>","protected":false},"author":1,"featured_media":9085,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"plain-container","ast-site-content-layout":"normal-width-container","site-content-style":"unboxed","site-sidebar-style":"unboxed","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":"","_wp_rev_ctl_limit":"5"},"categories":[3],"tags":[56,12,64,14,59,11],"class_list":["post-9084","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-cn","tag-en","tag-es","tag-options","tag-stocks","tag-tw"],"_links":{"self":[{"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/9084","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/comments?post=9084"}],"version-history":[{"count":5,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/9084\/revisions"}],"predecessor-version":[{"id":13947,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/9084\/revisions\/13947"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/media\/9085"}],"wp:attachment":[{"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/media?parent=9084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/categories?post=9084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/tags?post=9084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}