101 Investing Tips
11) Earning a high return requires more risk, but does not necessarily lead to a higher return.
Remember to ask, “What happens if I am wrong”. If you lose 100% of your investment in one stock, it greatly affects the performance of the rest of your portfolio.
12) You can’t know how much risk you can tolerate until you’ve tasted real losses.
Until you have gotten sick to your stomach and can’t eat you do not know what it means to lose.
More to come!
11) Earning a high return requires more risk, but does not necessarily lead to a higher return.
Remember to ask, “What happens if I am wrong”. If you lose 100% of your investment in one stock, it greatly affects the performance of the rest of your portfolio.
12) You can’t know how much risk you can tolerate until you’ve tasted real losses.
Until you have gotten sick to your stomach and can’t eat you do not know what it means to lose.
More to come!
posted by Chip at 7:47 PM
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