If you live and work in Israel and want to try a hand in the investment activity, you need to figure out how the global exchange space works and how existing investment tools operate. For novice market players, it can be difficult and unclear how and where to invest, where to start, what data to believe, and how not to make a mistake and lose money.
Entering the investment world alone is uncomfortable and very risky. With DotBig Forex, you will not only be able to master the basic things related to investment realities, but also create your ideal investment portfolio in terms of profit!
Features of Investing in Israel
Here are some crucial points regarding the investment climate in Israel up to date:
- Israel has seen significant GDP growth for several years compared to the OECD and the United States, and the unemployment rate of 5% is one of the lowest in the world.
- This state ranks 4th in terms of the number of scientific personnel and has the highest number of engineers and doctors of sciences per capita worldwide. These unique features lay the foundation for successful research and innovation.
- Israeli thinkers, creators, and leaders are changing the world of media and the Internet, cybersecurity, water technology, agricultural technology, healthcare and life sciences, financial technology, automotive, high technology, and smart manufacturing.
- From 3D printers to nanotechnology and cybersecurity, Israel is a motherland of the most advanced flows and industrial technologies in the world.
- The Ministry of Economy offers countless programs and services designed to simplify the investment process and increase investor profits. A wide range of government incentives and grants makes Israel an ideal destination for foreign investors.
What is an Investment Portfolio?
An investment portfolio is a set of stocks from various fields or companies. It can be both conservative and aggressive. One can buy a portfolio for short-term or long-term funding. In the second case, the portfolio is focused on making a fixed profit over a long period.
The DotBig broker allows an investor to create any investment portfolio, which can then be used for different strategies. For example, for long-term investments, users mainly choose stocks with a maturity of 5 years or more.
Things to Consider Before Creating an Investment Portfolio
The ability to select assets for investment is a key skill for making a profit on the stock exchange. To solve this problem, investors need to analyze their own psychological profiles, set realistic investment goals, and learn how to properly allocate different types of assets within a portfolio. Or you can choose a simpler and more proven way – to enlist the support of an international broker, such as the DotBig exchange, and build an effective portfolio without financial or other risks.
And remember, if you invest in only a few assets, the risks are greatly increased: you can lose money due to a sharp drop in prices against the background of, for example, an unsuccessful company report or the imposition of sanctions. Then you will have to look for additional funds to invest again and regain what you lost, or wait for years for the asset to grow back in value.
To avoid this, it is optimal if the share of each asset in your portfolio does not exceed 10% of the total investment. Even if one asset drops in value, it will not affect your capital as a whole.
How to Choose an Asset for Building Investments Portfolio
When choosing an asset for trading and investing, consider the following aspects:
- Define an investment goal
This can be the accumulation of funds for a large purchase, an increase in capital, a regular income, a private pension, or a combination of both.
A clear goal is the basis on which an investor will build his financial plans. It will show how close or far it is from the desired result.
- Assess the risks
It is necessary to determine the acceptable level of investment risks. The investor must decide what level of losses is acceptable to achieve the desired level of profitability. This will determine the nature of asset allocation and investment strategy. For example, traditional investors prefer not to take risks but are ready for lower-than-average returns. Aggressive market participants are more likely to take risks for the sake of higher earnings.
- Distribute assets
It is necessary to divide your investment portfolio into several shares, between which assets will be distributed. If an investor is risk averse, most of his portfolio will be occupied by stocks, cryptocurrencies, or actively managed exchange-traded funds (ETFs). More conservative users choose assets such as passive exchange-traded funds (ETFs), currencies, and bonds.
- Analyze the dynamics of quotes.
When investing in stocks of companies from different industries, treasury or corporate bonds, general market stocks, industry ETFs, and other areas, an investor must constantly monitor the current market situation and price levels. The user needs to evaluate and analyze the selected asset and, based on the risk profile, acquire the assigned share.
Any investment asset carries risks, and its past performance does not guarantee future results. Therefore, it is necessary to make informed decisions based on research and analysis.
- Restoring balance
The market is not static, and it is influenced by many factors that affect the change in quotations. Because of this, the initial share of the portfolio will change over time. An increase or fall in prices leads to the fact that the share of some assets exceeds the target level, while others decrease.
Rebalancing is necessary to return to the original balance and compensate for such an imbalance. By buying or selling securities through the DotBig website, the investor restores the distribution balance he previously determined.
Investment Portfolio with DotBig
DotBig Forex broker allows traders from different countries, including Israel, to earn passive income by investing their capital in stocks, bonds, and other assets. The platform provides an opportunity to invest in both domestic and foreign corporations.
To build an investment portfolio with DotBig follow the guide below:
- Open a trading account on the platform. To start investing in stock market assets and create a portfolio from scratch, you need to be able to manage an investment account. To do this, start cooperating with DotBig Forex. Fill out the registration form and go through verification to log in to the trading platform.
- Add to your portfolio the market assets that you think can bring you profit. The portfolio may include stocks, bonds, and mutual funds. Make sure that the selected assets match your financial strategy.
- Distribute the investment assets. Monitor the DotBig reviews to clarify the optimal distribution for each investing product or give 80% to more reliable assets to minimize possible losses.
The main task for an investor is to ensure that his investment portfolio is balanced, taking into account risks and profitability.
The DotBig experts help you choose optimal, profitable, and promising assets and tools for investments. With DotBig investments, one can increase capital under the guidance of experienced experts and get passive income over a long period.