| 4 Ways to Manage Investment Risk |
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ninasen
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| 4 Ways to Manage Investment Risk |
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Here are a few ways to manage your investment risk:
1. Diversification
One of the best ways to manage investment risk is to diversify your portfolio. Instead of putting all of your money into one company, you need to spread your money around. By investing in many different companies within different sectors of the market, you are going to be able to lower the overall risk of your portfolio.
2. Asset Allocation
Within your portfolio, you also need to utilize asset allocation. This is a concept that deals with how you divide your money up between the different types of asset classes. When you practice asset allocation, you need to stick to a specific percentage of each type of security.
3. Research
Another way that you can manage your investment risk is to research. Before you put money into any investment, you need to make sure that you have thoroughly researched it. In order to be a successful investor, you need to spend a good amount of time researching every investment that you are considering putting your money into. By using careful research, you can potentially lower the amount of risk that is inherent when you invest in a particular security.
4. Watch Your Portfolio
Another way that you can potentially lower the amount of risk in your portfolio is to watch it carefully. Many investors do not pay attention to what is going on with their investments and end up losing money as a result. If you will pay careful attention to what is going on with your investments, you can adjust your investment strategy if it starts to perform poorly. This will help you lower the overall risk and bring in higher returns.
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Fri Aug 26, 2011 3:05 am |
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LottomagicZ4941
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| Re: mod's note |
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quote:
Originally posted by coaster
the post nicely summarizes the article; the link is unnecessary.
US Copyright law requires attribution; and if more is quoted than the Fair Use provision allows (borderline too much, in this case -- could swing toward permissible if commentary unique to this post is added), then specific permission to republish is required. The forum is held harmless by the relevant law; the poster is responsible for adhering to the law; however if a complaint is received, the forum must remove the unauthorized material.
Perhaps the link was thier attribution. I use to do that with joke of the day threads. Perhaps I still do;) Though lately I toss up my own jokes more so I don't need to attribution.
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Fri Aug 26, 2011 8:52 am |
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teena.robert
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| Re: 4 Ways to Manage Investment Risk |
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quote:
Originally posted by ninasen
Here are a few ways to manage your investment risk:
1. Diversification
One of the best ways to manage investment risk is to diversify your portfolio. Instead of putting all of your money into one company, you need to spread your money around. By investing in many different companies within different sectors of the market, you are going to be able to lower the overall risk of your portfolio.
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I agree with you and all of your points, but especially diversification is most important for me. According to me diversification is a best way to control your trading risk as well as trading or investing safely. If an investor invested his money in diversified portfolio then he will make profit from the market. The chances of profit are high in this case.
Forex Trading | Learning Forex
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Mon Aug 29, 2011 2:03 pm |
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harjos
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One of the way to manage our investment risk is avoiding unnecessary Taxes. Many investors ignore the tax-free growth and tax-free distributions unique to a Roth IRA while maximizing their contributions in their employer’s tax-deferred accounts. Because of compounding and the absence of taxation, investor’s wealth grows exponentially exposing them and their beneficiaries to a potentially enormous tax obligation in the future.
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Mon Oct 10, 2011 5:55 am |
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robmejia
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Great tips! Diversification and Allocation are really good options. At least if you fail in one investment, you still have other financial sources from other investments
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Fri Nov 25, 2011 2:22 pm |
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trungdang
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In the absence of capital to do something else. It would be dangerous
Thank you for sharing tips.
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Sat Jan 14, 2012 1:42 am |
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abbysmith899
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its really a nice information about managing investment risk, thanks for the sharing stuff like this
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Sat Jan 21, 2012 5:23 pm |
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cbhattarai
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I really agree to you, but research plays a very important role in Financial planning...
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Fri Mar 02, 2012 7:28 am |
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reeling
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The best way to manage risk is to calculate how much loss can you bear and how much profit do you want to make maximum..
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Sun Mar 04, 2012 10:15 am |
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JohnEbenezer
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Well..
Your shared points are very good for facing the investment risk..
It will be really helpful when we are going to start our business..
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Tue May 29, 2012 8:50 am |
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Sabrina Gage
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Thanks for sharing these great tips! I learned a lot. Really useful to manage investment risk.
http://emailmarketing.comm100.com/
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Fri Jun 08, 2012 8:53 am |
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john bradford
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| Use options to reduce investment risk |
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One way to reduce risk in investing is to use options rather than or in addition to stock. There are several risk reduction strategies, but one that I am particularly fond of is discussed in the free report referenced in my sig below or at GetWealthDirection.com.
John
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Fri Jun 08, 2012 2:51 pm |
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