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Tag: risk

Four Keys to the Market

There are four keys to doing well in the markets.

This is not one of those penny stock ads or any “Get Rich Quick” schemes.

These keys will, however, help you stay disciplined and progressing towards your goals. So, without further ado, here they are:

✈️  Set a destination in mind. Meaning, what is the point of your investments? By when will you need your investments to pay for what you need?

📈  Decide on the acceptable level of risk for your journey to your destination. Investments have the potential to lose value. Those investments that sound amazing because they went up 100%, also tend to have the potential to go down 50% or more. Really, this question of risk comes down to, what level of volatility is needed for your plan to be successful? Remember, volatility is just a measurement of speed at which the price moves. That movement includes rising prices.

📜  Follow rules to your buying and selling of securities, not headlines. In other words, remove the emotions from your investment decisions. It is a lot easier said than done, which is why having a good advisor is tremendously helpful. Make sure your advisor has a rules-based approach to their investments.

💼  Always do your research. Don’t rely on “that guy at work” for your investment advice. Don’t rely on that one headline either. We have found that by doing your own research, you automatically remove a lot of emotion from the buy or sell decision.

There you have it. Four keys to investing in the markets. Of course, this is not an exhaustive list, but these are ones we find are missed by average investors. If you don’t feel you have all four in place with your plan, please give us a call.