How do I do my Portfolio balancing in 7 steps
*Portfolio balancing:* 1. I Keep comparing your stock's performance with Nifty. 2. On an average if the portfolio starts showing more of a negative trend (>/= 6 times out of 10 compared to the nifty). i.e. either I'm getting lesser return % in a day compared to nifty, then the invested stocks need to he shuffled. _i.e. reduce some shares in non performing stocks & add that money to the performing ones._ *How to do?* This is more of a question, how to find a non performing stock. Caution : a stock showing negative trend , isn't necessarily a bad stock. We need to know the nature of a particular stock. For ex. Largcap stocks generally tend to move slowly while smallcaps move faster with high volatility. Let's explore how to find a non performing stock. 1. On each time you see your portfolio performing lesser than expected , check which stocks are responsible for this negative trend. 2. Generally, the stocks which have Lower than nifty growth for the day & yo...