Creation Of Investment Portfolio On The Basis Of Purchasing Selected Trading Signals

Abstract:

Together with the development of information technologies, opportunities open for investors to buy trading signals and recommendations via electronic form. The trading signals can be currently obtained for a large number of financial instruments. The purpose of this article is to enlighten the creation of an investment portfolio on the basis of purchasing selected trading signals. The article proposes methodology for choosing an appropriate company offering trading signals, which is subsequently demonstrated through an example of the creation of a specific portfolio from selected signals. The company selection methodology is based on assessments of independent institutions, length of company’s operating life, structure of individual speculative positions and risk handling. The created investment portfolio then represents the selection of trading signals in accordance with the developed methodology.