Wednesday, April 13, 2011

notes about investing

1. pay off debts and have an emergency fund before investing
2. higher returns would involve more risk, but risk can be minimized by studying the investment before putting your money
3. don't lose money, if the investment is falling, opt out at the early stages and lose a little. don't be hopeful that it will bounce back. this is very true for stocks.
4. don't be greedy. don't pool all your investments into the best performing asset
5. be vigilant. monitor the performance of each investment. if it doesn't perform, stay with cash
6. invest in educating yourself. you never lose with this one
7. make sure you understand the difference between investing and speculating
8. if you don't understand it, don't place your money in it until you do
9. don't be emotional about your investment. be prepared to sell if necessary
10. again, don't lose money

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