This helps you achieve stability and reduce potential risks

binesir495

For example, advertisements and influencers on social media platforms may prompt you to buy stocks that have low chances of making a profit. Make sure that your choice to buy stocks is based solely on their performance, and try to avoid any emotional indicators or personal bias. 5. Diversity in purchasing stocks Your stock portfolio should be diversified and contain stocks from different sectors and companies.

When trading stocks in Saudi Arabia. You can achieve diversification by Telegram Number Data purchasing shares in large and small companies, emerging and medium-sized companies, and you can also diversify by investing in international stocks and emerging and developed markets, as good profits can be achieved in these markets. You should also consider purchasing shares from different sectors such as energy, technology, health care, and manufacturing. These sectors in particular are witnessing significant economic growth recently in Saudi Arabia, which positively affects the shares of the companies in which you operate. Diversification protects your portfolio from potential risks and reduces the impact of any losses that may occur in one of the sectors or companies.




For example, when volatility occurs in the stock market and its value decreases in a particular sector, this will not cause you a huge loss, because you own shares in other sectors that can compensate for this decrease and protect your portfolio from major losses. You can also buy shares of companies that have competitive advantages in their market and achieve good growth and profits in the long term. It is also preferable to buy shares of companies that pay cash dividends to shareholders every period, as these dividends can increase the overall returns of your portfolio. When you diversify your portfolio, you must follow a balanced and correct strategy. For example, you can determine a percentage for each category of stocks in your portfolio according to your investment goals and the level of risk that you can bear.