Can Calculated Risk Taking Be The Key To Financial Security?
There are many different ways and methods of investing, and often they will depend on your own personality for investing. Many of us will have a friend or associate who is very aggressive with their investments, while others are very conservative, and struggle even to invest in low risk ventures.
While it is not the intention of this article to pass judgment, we feel a blend of the two is the best way to increase your holdings over time.
The very first thing you’ll need to do concerning your investments, is determine what type of investor you are, how much you have to invest, and what are your own investment goals. If you’re a gambler, or someone who enjoys the thrill of watching the market rise and fall, aggressive investing may be perfect. If on the other hand, these type of investments cause anxiety, it might be well to look for more conservative investments.
Our positions will rise and fall based on the economic and global climate, or possibly because of a small investment mistake such as jumping onto a “Buying Frenzy” too late, then watching it tank. Rather than beating a dead horse, learne from your mistakes and live to invest another day.
Here are a few guidelines…
Will you need your money back quickly or are you investing for retirement? No matter the type of investor, we’re all hoping for increase over time, but many would like that increase to happen rapidly. In order to experience a rapid ROI, it’s mandatory you get into the market at the right time with the greatest opporutnity for upside potential. That might seem obvious but not surprisingly many investors get blindsided by the market.
Will you need your money back quickly, or will you let it sit for the long-term? If you’re someone who needs your money quickly, do you have the proper mentality to watch the markets rise and fall on a daily basis? It will often be necessary to jump in and out of a position as trends change, are you prepared for this? If not you might be better suited to buy established stocks and hold for long-term gains?
FACTS CONCERING PENNY STOCKS: Penny stocks have great upside potential and should not be ignored by the investor. While high-pressure salesman have given penny stocks a bad rep in the past, there are many established companies, that began life as penny stocks.
DEFINITION: Penny stocks are mostly traded in the over-the-counter market and pink sheets. Penny stocks are priced at less than five dollars a share, but have no upward limitation on how far they might rise.
Take the time to determine your own investment personality, then decide if you’re prepared and have the time to do your own research, or whether it would be smarter to subscribe to a quality investment newsletter.
It would be wise to take the time to open a brokerage account, no matter the state of the market as you read this, this will give you the necessary foundation to make your investment moves when the timing is right.
