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Building a basic portfolio to complement Penta Trading
The goal of a basic portfolio is to build a stable foundation. Like the foundation of a pyramid on which all other building blocks are built. This should therefore have a higher weighting than the rest of your investment strategy (e.g., Penta portfolios). The primary aim is to follow "the market". It is therefore highly diversified and offers protection for the entire portfolio. However, such a basic depot does not really have the task of maximizing the return and that's why we developed our Penta portfolios.
A basic portfolio can be designed in several ways. We believe it should be based on an ETF portfolio that can - in a second step - be supplemented by a targeted selection of quality stocks. A so-called core-satellite portfolio. Whether this makes sense is primarily a matter of taste and there are even good reasons to have a basic portfolio built up exclusively on individual stocks.
What are the advantages and disadvantages of ETFs vs. individual stocks? What options do I have to combine both worlds? We explain the advantages and disadvantages of all approaches and what to look out for when making your selection in the sections below.
What needs to be avoided: Always changing strategy. Even if only a reduced number of options are shown, you have to choose one option here too. The exact weightings are highly individual and this section should serve as a guideline on how to design your desired portfolio. Once you've done that, stick with it and go through with it. Don't be unsettled by short-term fluctuations. Nothing is more damaging than changing strategies too often. The following always applies: Inform yourself thoroughly. Do not make light, spontaneous decisions.
What has no place in a basic portfolio either are penny stocks, meme stocks (“Gamestop”), air shacks (“Cloudflare”) or crypto currencies – neither in simple nor in leveraged form. All of this is generally not advisable, especially for beginners, even if it is just a gamble or a speculative admixture. In most cases you burn your money with it.
