Effective Money Management Strategy for Traders

Video Transcript

"Hi there, I'm Cathy Pareto, the founder of Cathy Pareto & Associates, certified financial planner here in Miami, Florida. In this clip we're going to talk a little bit about effective money management strategies for traders. Now I personally don't endorse active trading in my portfolios, I'm more of a buy and hold, strategic asset allocation professional, but for those of you that want to delve into this, just be cognizant of a couple of things. First of all, know what tools you have at your disposal at the discount brokerage firm. There's all sorts of research available to the investor to see that you're hopefully buying the right kinds of investments and the right kinds of stocks. Also, don't ignore your portfolio. If you're going to be actively trading your portfolio, you need to be aware of how those positions are doing on a day to day basis to see if you ought to continue to invest in those companies. And if I can offer you one more piece of advice would be don't concentrate your trading portfolio in any one industry or in any one asset class. Think about diversifications on a global basis so that you're not subjected to concentrated market risk. So that's a little bit about some strategies for traders and this has been Cathy Pareto in Miami, Florida."