Investing should be easy – just buy low and sell high – but most of us have trouble following that simple advice. There are principles and strategies that may enable you to put together an investment portfolio that reflects your risk tolerance, time horizon, and goals. Understanding these principles and strategies can help you avoid some of the pitfalls that snare some investors.
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There are four very good reasons to start investing. Do you know what they are?
Diversification is an investment principle designed to manage risk, but it can't prevent against a loss.
Consider how your assets are allocated and if that allocation is consistent with your time frame and risk tolerance.
Investors who put off important investment decisions may face potential consequence to their future financial security.
Bonds may outperform stocks one year only to have stocks rebound the next.
For some, the social impact of investing is just as important as the return, perhaps more important.