Portfolio Diversification For More Robust Risk Management

Online, February 28, 2013 (Newswire.com) - Futures trading site FTAcademy.com is encouraging traders to diversify their portfolios as far as possible, across a range of markets and positions in order to spread the risks of trading futures contracts and build a more robust, resilient account more able to stand market risks.

Diversification through investing in a wider number of positions is a simple, first level technique for spreading risks and managing the threats to capital, yet it can be particularly effective in isolating trading capital from other threats and sharing the market risk of exposing your money to potential leveraged losses.

By spreading their capital over more positions in unrelated markets, traders can better weather market storms, and avoid sustaining significant capital damage through effective risk control measures, according to a spokesperson from FTAcademy.com.
A spokesperson for FTAcademy.com said that by thinking more about portfolio diversification, traders can better spread the risks inherent in trading futures and can build a more sustainable account for longer term trading success.

"Portfolio diversification is arguably one of the easiest ways to manage risk in futures trading, spreading the market risk across a more diverse base of positions to ensure the ceiling doesn't cave in as soon as a position heads south. More diversification - within manageable limits - usually always signals a more robust account that's able to weather the market storms. By spreading capital around markets and researching opportunities across a broader base, risks can be contained more effectively and profits focused on those positions that work best."

"At FTAcademy.com, we urge traders of all levels to look for possible ways in which they can spread their risk and incubate capital from the threat of loss. With materials covering trading the futures markets from top to bottom, our resources are designed to help traders learn better defensive practices like diversification, while also finding alternative ways to profit from trading in futures contracts."

About:
FTAcademy.com is an online futures trading portal, providing access to a vast library of trading know-how, strategy and advice for traders of all stages of experience. Compiled by experienced traders, FTAcademy.com provides a comprehensive trading education thanks to quality, focused resources that are both accessible and actionable for traders keen to improve their success rates.
Reducing the costs of trading futures can play an important role in maximising profitable positions, and the FTAcademy.com broker comparisons section provides traders with an opportunity to identify the best deals. With reviews and charts offering independent comparisons, traders can highlight the most cost effective options for trading their account.