Trading and asset allocation in varying proportions are among the most important strategies for risk management and achieving sustainable returns in financial markets. Asset allocation involves distributing investments across different categories such as stocks, bonds, real estate, and commodities, with the aim of balancing return and risk. By diversifying assets in varying proportions, an investor can reduce the negative impact of any asset class if it incurs losses.

For example, an investor may choose to allocate 60% of their portfolio to stocks, 30% to bonds, and 10% to gold, based on their financial goals and risk tolerance. These proportions are not fixed; they can be adjusted according to changing market conditions or the investor's age stage.

Active trading within this framework requires continuous monitoring of the markets and analysis of financial and technical data to make informed decisions. The combination of asset allocation and smart trading enhances the chances of success and mitigates sharp fluctuations in the value of the investment portfolio.