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Push Returns Forward: The Role of Active Trading in Your Portfolio

July 13, 2017
active trader role

One reason investors decide to actively trade their portfolio is to attempt to enhance their portfolio returns. But if you’re not outperforming the market, then what’s the point, right? Instead of spending the extra effort to underperform, why not invest in a benchmark mutual fund or ETF, or a combination of funds, and then spend that extra time doing whatever you like—relaxing, golfing, traveling, or spending time with loved ones.

We know; many of you are thinking, “Well, I actually do actively trade. I just don’t care whether or not I beat the market.” Well, perhaps you should care. Many investors fail to achieve even average annual market returns while actively trading. In fact, the results are gloomy—the average investor realizes only 3.7% annually, according to a recent study published in Bloomberg—far below the long-term average market return. And remember: underperforming market returns could delay or prevent your ability to retire when you desire.

The questions mount:

  • "But how can I enhance my portfolio returns and what is the benchmark average?"
  • "How much of my portfolio should I allocate to active trading?"
  • "What strategies could I use in the active part of my portfolio?"

Knowledge is Power

To discover the answers to these great questions, consider attending the Active Trader breakout sessions at the 2017 Investools Investor Education Conference. In these sessions, you’ll learn strategies to:

  • Help you manage your portfolio during inevitable market downturns
  • Potentially generate income using options (but keep in mind that options aren't for everyone)
  • Diversify your portfolio to help you manage risk better
  • Determine how much of your portfolio to allocate to active trading

You’ll also discover what the “average annualized returns” have been in the market—and you might be surprised. 

So whether you’re looking for methods to generate additional income, diversify your investments, or protect your portfolio, consider actively trading as part of your overall strategy. 

Knowledge: An Important Asset

We provide our clients with an exceptional educational experience using innovative, interactive resources including videos, articles, webcasts, and events. You can learn on your own terms—and have some fun while you're at it. 

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