Tuesday, October 11, 2011

Investment Risks and Rewards

Treat any relationship like an investment. That is what is actually is, right?

Be aware that there are both long term and short term investments.

Thoroughly research the product before investing; don’t rush in simply because it is the talk of the town or catches a lot of eyes. Trends change quickly and what is “hot” today can be chilly in an instant.

Know your goal before investing heavily.

Understand how much you are willing to lose before pulling out.

Know when to cut your losses and sell.

Research and constantly assess the potential for growth and return on investment.

Understand the stocks position and history: frequency of fluctuations, prospect for market decline, management style, if it has been poorly managed, ROI and of great importance to your own reputation: whether she is privately or publicly held.

You can always apply the gambler’s advice: “You gotta know when to hold ‘em, know when to fold ‘em; know when to walk away and know when to run.”


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