Are You Adverse To or Comfortable With Investment Risk?
Obviously were all different and have different goals and styles of investing, some enjoy risk, others are adverse to it. Put these factors together and they’ll determine your investment personality, and the way you determine your financial future. There are those among us ready to take a risk plunging in and out of the market at a moment’s notice; while others invest only for retirement, seeking to conserve their capital, but never realizing the upside potential of a good penny stock pick.
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.
There may be a day when we put careful thought and analysis into a particular stock, only to find it tanking leaving us wondering where we did wrong. In many cases you’ve done nothing wrong, you’re simply a victim of the economic climate. If you find you did make an investment mistake, (something we’ve all done at least once), don’t let it define you, learn from it and move on.
Here are a few points, you may want to consider to help you determine your investment personality.
Do you have a particular area of the market that interests you such as CDs, mutual funds, currencies, commodities, or blue chips? If you have a particular area, it’s wise to become an expert, or be aligned with established experts in a financial niche. Again this will depend on your investment personaility.
PENNY STOCKS OFFER GREAT UPSIDE POTENTIAL: The term penny stocks is actually a misnomer, since the price of the stock’s range from fractions of a penny, up to $4.99 per share. Since these stocks are initially priced low, they have the greatest opportunity for quick upside potential.
Becoming an investor in today’s market is a challenging enterprise, however using sound strategies and proper picks, your upside potential can be enormous.
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.
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