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The next few days are crucial for active traders who hope to end the year on a positive note.
This is because now is the best time to take stock of your 2020 tax situation and manage portfolio volatility in the new year.
Despite recent market instability, the S&P 500 is up about 65% since it bottomed on March 23, when markets plunged on pandemic fears.
Overall, the news has been good for investors, including hobbyists who are just starting out.
“It’s always helpful to take a step back and look at your portfolio as a whole, especially since stocks have done pretty well over the year,” said Amy Arnott, portfolio strategist for Morningstar’s manager research group.
“When you are an active trader, it is easy to get immersed in daily activities,” she said.
By following these three steps now, you may even be able to avoid a headache in 2021.