Forex Traders Should Build Diverse Portfolio

Online, August 14, 2012 (Newswire.com) - Forex education and trading site IndependentInvestor.co.uk is encouraging forex traders to develop more robust, resilient portfolios through diversifying the positions and markets to which they are exposed and introducing layers of capital isolation to prevent account damaging losses.

In highly leveraged trading like forex, the need for market and investment diversity is significant, in an attempt to prevent the loss generating effect of negative market movement and to preserve margin and avoid broker difficulties, thus spreading trades over a wider number of separate positions can achieve better results in reducing risks.

And with greater portfolio diversity comes the ability to earn more from a more varied portfolio of positions, according to IndependentInvestor.co.uk, who suggested that diversity can be both a necessity for capital protection and an opportunity for growth.

A spokesperson for IndependentInvestor.co.uk said that by striving to build a portfolio that was more diverse by design, and by ensuring the risks of the market were spread thinly across multiple positions, traders could better protect against the many and varied risks of trading forex.

"Diversity should always be a keyword when it comes to building a trading portfolio. Whether its spread betting, forex or CFDs, keeping a level of diversity across the base of your account is an important feature of broad risk management, and enables you to both protect against market failure while opening the door to profit from a wider range of market opportunities. In this sense, diversity is a double strength in trading forex, paving the way for better risk management and potentially more profitable trading."

"At IndependentInvestor.co.uk, we've published a range of materials for traders looking to control the risks of the forex market and establish more resilient trading accounts. By spreading the risk and isolating your capital today, you build a stronger framework for profiting from the markets and growing your capital tomorrow, and our aim is to provide the step-by-step guidance ordinary traders need to achieve this end."

IndependentInvestor.co.uk also provides traders with the chance to compare different forex brokers to find the best spreads and leverage opportunities available, with independent, visual comparison tables facilitating at-a-glance research and broker decision-making.

About:
IndependentInvestor.co.uk is an online investment resource site, offering training and free materials for financial traders looking to achieve better results self-managing their capital. Aimed at helping traders of all stages of ability and trading skills, IndependentInvestor.co.uk is home to an extensive archive of knowledge, tips and techniques for generating better results from trading the forex markets.

For traders looking to reduce the costs of their trading or find a provider offering more generous degrees of leverage, switching brokers is made easy by the forex broker comparisons section at IndependentInvestor.co.uk, designed to help traders compare to find the tightest spreads and the best account functions available in the forex trading market.