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How To Build A Diverse Online Investor Portfolio In A Volatile Financial Market Starting out in the financial marketplace can be intimidating, and with the uncertainty of the COVID-19 pandemic bringing with it periods of market volatility, building the right portfolio can be challenging for first-time investors.

By Madalina Rotaru Edited by Aby Sam Thomas

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.


Starting out in the financial marketplace can be intimidating, and with the uncertainty of the COVID-19 pandemic bringing with it periods of market volatility, building the right portfolio can be challenging for first-time investors. In the world of investing, there are several factors to consider - but the best way to invest money is evaluating how it works best for you., the leading global multi-licensed broker operated by Key Way Group, is changing the way people in the Middle East invest, making online trading more accessible, transparent, and secure in the region. Through the CAPEX Academy, new-time investors can learn how to trade faster and more manageable ways for better-informed trading decisions.

Before starting, recommends knowing exactly why they're investing and set expectations for their investment. Otherwise, it may seem like sitting in the driver's seat, but there's no direction, aim, or actual destination. There are four main investment objectives: capital appreciation, current income, capital preservation, and speculation. A young and unmarried 23-year-old looking to produce regular current income will need a different investment strategy than a 60-year-old working on a capital appreciation portfolio that will support his retirement plans. Other vital factors to consider would be personality, risk tolerance, and the current financial situation. That will provide an outlook for the kind of assets that would benefit the investor's portfolio.

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After determining the investment strategy, traders will have to distribute their capital between different asset classes including forex, stocks, indices, bonds, exchange-traded funds, and commodities via leveraged products. It's always advised to diversify your stock portfolio, as the famous saying states: "Don't put all your eggs in one basket." By doing this, new-time investors minimize risks as they spread their loss across different sectors, industries, and geographic regions to have a diversified income stream. It's also always a good idea to invest in high-quality blue-chip stocks with steady good performance, such as Berkshire Hathaway, 3M, The Walt Disney Co., and others.

As recommended by Warren Buffet (who, for the uninitiated, is one of the most successful investors in history), a significant tip to first-time investors is to only buy in a business that they can understand- think about investing in a company versus investing in a stock. Before adding them to the portfolio, it's essential to consider the business's activities and carry out an extensive analysis to determine its opportunities and risks in the future. Traders should always possess a proper investment strategy and a plan.

The Middle East is a popular investment destination, with widespread energy resources and a growing population. Although financial markets were impacted by the pandemic crisis, according to the latest results from the Ernst and Young Global Capital Confidence Barometer, 71% of MENA respondents expect to see revenues return to pre-pandemic levels by 2022 or earlier, while 69% anticipate a return to normalized profitability within the same time frame. At the end of the day, asset diversification is an essential tool to minimize risk, as it does also opens you up to more opportunities. As such, I believe in knowledge and diversification; when you have the right knowledge and education, everything falls in its right place.

Related: Four Tactics Young Tech Entrepreneurs Should Keep In Mind To Ensure The Long-Term Success Of Their Startups

Madalina Rotaru

CEO, Key Way Markets Ltd

Madalina Rotaru is the Chief Executive Officer (CEO) of Key Way Markets Ltd, the operating company of leading global multi-license broker, and Chief Operating Officer of Key Way Group Ltd. With extensive expertise and a wealth of experience in the financial services domain to draw upon, Madalina leads by example, playing an integral role in the company’s continued growth and development. 
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