Hi, fellow investors and traders! I'm very new to investing so I need your advice on something. I am still experimenting learning about different approaches (often VERY different). For example, I am mainly interested in long-term investing (bonds and stocks) but I can't help but get my feet wet into speculation (leaps trading). So, my question is simple: Should I completely differentiate between the two approaches by keeping them in two separate portfolios? For example, should I keep the returns that each strategy yields from overlapping each other? Or is it better to keep them in one portfolio and balance my positions every now and then? For example, 10% of my assets always be my speculative position and the rest in bonds and stocks? Not trying to get a definitive answer of course. I'd just love to hear what in your perspective would be wiser. I haven't started investing yet so I can't see much beyond the end of my nose...
IF IT WAS ME........(not advice to anyone).....I would DEFINITELY separate my trading account from my LONG TERM account. It would make record keeping and analysis much easier. It would also help to STOP ME from trading over my trading budget....or at least hopefully help me to avoid the temptation to dip into long term money. I would have both accounts at the same place so I could view both with one log-in and to facilitate transfers, etc, etc.
Hi Konstantinos, It's definitely a good idea to have two separate accounts, especially if you are seriously considering short term trading. It's much easier to see which of the two is more profitable.
