If you are planning to invest make sure that you know well how to manage it. It is best to consider the best possible ways to avoid regrets when you are there starting your investment rampage only to realize you failed. You need to consider your asset allocation, your financial goals, investment vision, and risk tolerance. To make them clearer for one's understanding, it is specified below :
- Financial goals- what is your financial goal? What must you do then?
- Investment horizon- how long will you be able to withstand the crucial part of your investment?
- Risk tolerance- Can you be able to tolerate sick or surrender?
- Risk diversification- Know the different kinds of risks you may encounter- Will you be able to beat them?
- Buy-hold your portfolio, but back it up with a stop-loss order- Are you that ready to have a backup plan?
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