Self-Directed Trading
Self-directed Trading powers you full control over how you invest your fund. You have the freedom to buy a wide range of securities including individual stocks, bonds, funds, derivatives, or allocate your money in any way that you see fit. This level of control gives you a lot of power to customize your portfolio to align with your needs and goals. However, it also puts the onus on you to research the market and invest wisely.
Pros:
- Total Control How and When Your Money Gets Invested
- Access to a Wider Range of Investments
- Lower Costs
- Excitement of Managing a Portfolio
Cons:
- Time Consuming
- No Safety Net
- Potentially Higher Risk
- Stress of Managing a Portfolio
Advantages
Some of the advantages of self-directed Trading include:
- Total control over how and when your money gets invested.
- Access to a wider range of investments, such as derivatives, futures, crypto, and more.
- Lower costs because you don't have to pay management or advisory fees.
- For some, managing an investment portfolio can be fun.
Disadvantages
Some drawbacks of self-directed Trading include:
- Proper management of an investment portfolio can be highly time-consuming.
- You have no safety net to back you up and provide a second opinion and you'll lose money when you make poor Trading decisions.
- Risk may be higher, especially if you use higher-risk securities and derivatives in your portfolio.
- Managing a portfolio can be stressful especially when markets are volatile and losses are increasing.