Trading across different asset classes typically increases the likelihood of making it through a period of high volatility without suffering a big loss.
Knowing about the multiple assets that are traded, the markets in which they are traded, and events/ news impacting their prices gives you an exposure to the markets at both micro & macro levels.
So, in today’s blog, we can discuss why a trader must know about multi-assets and not just a single asset:
What is Multi-Asset Trading?
A multi-asset trading is one of the strategies combining multiple different asset classes, forming a portfolio of assets. Therefore, by dividing assets across various classes, multi-asset trading boosts the total portfolio’s diversification.
A multi-asset trading strategy can be implemented in a variety of ways. Most portfolios consist primarily of stocks and derivatives; however, you can also trade in:
- Equities
- Commodities such as Gold, Sugar, Metals, etc.
- Currencies such as USD, Euro etc.
Many of these assets will be mixed together in a multi-asset portfolio that is really diversified. You can even choose to put money into each of them. A well-diversified trader can manage any eventuality even though any asset may occasionally outperform or underperform the others. A multi-asset portfolio with various assets might offer protection from volatility and significant market fluctuations.
How can one mitigate risk by multi-sset trading?
So, let us take an example to explain how one can mitigate risk by multi-asset trading-
There is a negative correlation between the dollar index and the Indian stock markets. This means that when the Dollar Index falls, the Indian Stock Markets rise and vice versa.
This is because FIIs (Foreign Institutional Investors) invest more in Indian stocks when the dollar index declines because they receive larger profits than they would from investing in dollars.
This can be proven from the chart below:
As we can see from the chart above, how the Nifty 50 is falling as the USD\INR Index is increasing. To mitigate the risk of falling stock prices, you can trade in currency futures.
Pros of Multi-Asset Trading
Below are the advantages of multi-asset trading-
- Diversification: Multi-asset trading is a simple strategy for achieving diversification and all of the advantages of a diverse portfolio.
- Protects against severe losses: By diversifying your holdings, you can profit from increases in all asset classes without taking on a disproportionate amount of the risks involved. If your portfolio is adequately diversified, even if one asset’s value plummets, your entire holding won’t be destroyed.
Having understood what multi-asset trading is, the question comes of How to do multi-asset trading?
For this purpose, Elearnmarkets has curated India’s first Multi Asset Trading Mentorship program.
What is the Trading Mentorship Program all about?
The Trading Mentorship Program (TMP) is all about giving the perfect recipe for becoming a successful full-time trader. Trading equities, equity and index options, commodity and currency require the traders to gain expertise in key skills like stock selection, selecting low-risk entry points in that stock, risk and money management, position size management, partial profit booking and re-entry on moderate pullbacks. The program is precisely focused on each of these aspects.
We have mentors who have rich trading experience in Indian and International markets. We focus on intraday and swing trading in equities and derivatives actively during each day of the week. This helps the participants build the right frame of mind and approach to succeed in the market consistently.
This Program is curated by the Top 5 Stock Market Experts with a combined experience of 75+ years in trading, training, and building a community of Independent Traders.
These experts have excelled in their niche & will guide you to understand what type of asset class you want to trade in & what kind of trader you intend to become.
This Program will give you a 360-degree learning circle from basics to advanced:
You will learn
- Technical Analysis from Expert Souradeep Dey – reading of charts, understanding market structure, indicators, price action strategies, identifying stocks, timing the market etc.
- Unique Relative Strength Theory by Expert Vivek Bajaj
- 7 Profitable Options Trading Strategies by Expert Chetan Panchamia – introduction to derivatives, Options Greeks, straddle strangle strategies, expiry day trading, max pain theory etc.
- Currency & Commodity by Expert Saanando Das – multi-asset portfolio creation, Intermarket analysis, base metals, sentiment analysis etc
- Momentum Trading Strategies by Expert Abhijit Paul – understand trading strategies & time frames, learn to develop unique trading set-ups, pullback strategies, etc.
And this program is not limited only to the curriculum; you will also get
- 14+ hours of on-demand content
- 65+ hours of Live Interactive Sessions
- 100+ hours of Live Trading Sessions
- One-year Access to StockEdge and 3-month StockEdge Social Platforms
- 30-minute Counselling Session
Become an All-season Trader
In this program, we empower you to trade and develop discipline & patience under any given market scenario. This program intends to build the right mindset amongst the learners to analyse the market and Become an All-Seasons Trader.
If stock Markets have always been your thing if you have been looking to make a career in trading, if you want to explore a passive income stream, generate legitimate part-time income and want to mitigate risk in your portfolio.
You can also watch this video on our TMP Program-
Bottomline
Multi-Asset Trading Program is not just a course; it is the combined experience of the top 5 experts along with the team of research associates who have put this effort to help you become an Independent Trader.
This program will give you the liberty to learn and choose your own niche, the asset class that you can deal in, the market where you are most comfortable to trade, to develop your core area and emerge as an Independent, Confident & especially Become an All-Season Trader.
Multi-asset trading is one of the best ways of mitigating risk in our portfolio by trading different assets. However, if you want to learn how to do multi-asset trading in-depth and become an expert, our Trading Mentorship Program is the best place to get started.
You can also visit web.stockedge.com, a unique platform that is 100% focused on research and analytics.
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