Invest to Financial Freedom - 5 Tips to prepare yourself for Risk? Tips 3
The Best Way to Understand this site is subscribe the RSS or Email Updates.
Welcome back. Today I’m going to share with you the tip number 3 of 5 tips to prepare yourself for investment risk. Here is the tip number 1 and number 2.
Tip number 3: Build Your Own Investment Strategy
Do you like to play strategy game like Red Alert, War Craft? If you play them before you will know what the meaning of “Strategy†game. You simply using your different kind of troops and weapons, combine them, make a team work and attack your enemy.
Investment is also same. Different kind of Stocks, Bonds and funds will be your weapons to make money. So your job is how you combine them and let them work with each other and at the end of the year brings back some profits for you.
To us, as normal citizens, we want to invest in some investments that are low risk. So what we can do is just build up our own investment strategy and Diversify our investment. According to some experts, if your investment plans consist of 30 types of funds and stocks or other investment, it really can bring down the risk of overall investment.
The theory is simple, if you invest your money into Stock A. Now Stock A is changing its trend and going down. So you lost all the money. But if you diversify your investment, invest in Stock A and Stock B. While the Stock A is going down, your Stock B is going up. So even you lost your money in Stock A, but Stock B still can bring some money back to cover your loss or break even.
Here is a suggestion, if you want to invest and mange your money at low risk, put 40% of your money in bank saving account, 30% for funds, 10% go for stocks, 10% for insurance and 10% for other investment. Or… If you want more options, you may read my other posts called ways to invest your $100,000.
Some Related Posts
Invest to Financial Freedom - 5 Tips to prepare yourself for Risk? Tips 4Invest to Financial Freedom - 5 Tips to prepare yourself for Risk? Tips 2Invest to Financial Freedom - 5 Tips to prepare yourself for Investment Risk?Can't Find What You are Looking for? Try Google Search
 |
   
|
Comments
Leave a Reply