Portfolio management is a vital tool for trading in the UAE stock exchange. You can increase your chances and minimise risk by carefully monitoring and managing your investments. This article will discuss the importance of portfolio management in the UAE stock market and how it can benefit experienced traders and those just starting.

Create an investment strategy

First, it’s essential to understand what portfolio management means in terms of trading stocks. It involves creating an investment strategy tailored to your circumstances and interests. This approach requires careful analysis of risk tolerance, liquidity preferences, diversification objectives and return expectations. With these considerations in mind, traders can decide which sectors or stocks they should buy or sell based on their goals.

Make informed decisions

By using portfolio management, traders can make informed decisions about the stocks they trade, and this is especially important during market volatility, when stock prices may fluctuate rapidly. …