How to manage portifolio?

Discussions specific to trading the stock market.
Post Reply
oem7110
Roundtable Knight
Roundtable Knight
Posts: 381
Joined: Wed Jul 12, 2006 9:33 pm

How to manage portifolio?

Post by oem7110 » Fri Jun 21, 2013 11:00 pm

In portifolio, it contains stocks, bonds and cash. Recently the bond price drops, portifolio should decrease the percentage on holding positions, but the next question is

1) Should we sell stocks and hold cash? in order to balance the ratio between stock and bonds.
2) Should we increase cash percentage after selling bonds? but keep the stocks position unchange.

Does anyone have any suggestions on what to do with the money after selling bonds?

Thanks in advance for any suggestions

Jake Carriker
Site Admin
Site Admin
Posts: 1493
Joined: Fri Sep 12, 2003 10:32 am
Location: Austin, Texas

Post by Jake Carriker » Sat Jun 22, 2013 12:10 am

A software package like Trading Blox allows a person to ask questions like this, formulate several potential "answers" (trading rules or systems) and then test them on historical data to see which seem more or less promising. There might not be one right answer, but there might be one that meets your needs and seems to work in back-testing.

For instance, you can even test your premise, "Recently the bond price drops, portifolio should decrease the percentage..." How do you know what the portfolio should do? Software like Blox lets you get some data driven answers. The answers usually bring up more questions, which might require lots of opinions from others to answer, or might simply require more thinking and programming the questions into back-testing software.

Post Reply