This is something that most people don’t even think about, but knowing what your risk tolerance is and investment style are very important. This will help you choose investments that are more suited to you, and which the long run should do better as you will be less stressed and make fewer trading errors.
While there are many different types of investments that one can make, there are really only three specific investment styles, and those three styles tie in with your risk tolerance, these are conservative, moderate, and aggressive.
Naturally, if you find that you have a lowish tolerance for risk, your investment style will most likely be conservative or moderate at best. If you have a high tolerance for risk, and are relativily young, you will most likely be a moderate or aggressive investor. At the same time, your financial ambitions will also determine what style of investing you use.
If you are saving for your retirement in your early twenties, you should use a conservative or moderate style of investing, but if you are trying to get together the funds to buy a home in the next year or two, you would want to use an aggressive. Being an active stock market trader would be considered an aggressive style for most people.
Conservative investors want to make sure that they maintain their initial capital and make modest gains per year, they want to sleep well at night. In other words, if they invest $4000 they want to be sure that they will get their initial $4000 back. This type of investor usually invests in blue chip stocks and bonds and short term money market accounts. But remember trading stocks, even if they are blue chips can still be very risky as we have seen in the 2008/9 bear market.
An interest earning savings account is a very common approach for conservative investors.
A moderate investor usually invests much like a conservative investor, but will use a small portion of their investment funds for higher risk investments. Many moderate investors invest 50% of their investment funds in safe or conservative investments, and invest the remainder in riskier investments.
An aggressive investor is willing to take bigger risks that other investors won’t take. They invest higher amounts of cash in riskier ventures in the hopes of achieving larger returns – either over time or in a short amount of time. Aggressive investors often have all or most of their investment monies tied up in the stock market.
Again, determining what style of investing you will use will be determined by your financial goals and your risk tolerance. No matter what type of investing you do, however, you should always carefully research the investment and never invest your cash without having all of the facts.
If you think you are an aggressive investor and intend to trade stocks activily, make sure that you learn how to trade before making your 1st stock purchase.
A767321456
If you are about to start, or are already in the process of learning how to trade, or day trade, you may have already been searching the internet using Google or Yahoo for day trading training education, tools, software or seminars, and have found that there is a lot on offer.
For example “trading course” brings up 758,000 pages in Google and “trading seminar” another 109,000 pages, the question is what should you be looking for when buying trading education. In this article I’ll point out some of the things to check before spending your hard earned money on your trading education.
1. Becareful of the hidden costs involved in a trading seminar that is away from home, account for the expense of hotels, meals travel and car rental?, it may be a lot more than you expect.
2. What is the return policy, this can vary widely between trading education companies, for some you only have a 3 day cooling off period while for others you may have up to 12 noon or the end of the 1st day to ask for refund if you decide this was not right for you.
3. For a live seminar are you also given DVD’s of the same or similar content?, so often live seminars fail to cover all the very important details involved in day trading. Having a set of DVD’s enables you to watch the content over and over again at home until you get it. Beware that some companies will charge you extra for the DVD’s even though you have already paid for a live trading seminar.
4. Check the internet for positive and negative feedback on the company and trading seminar. Use search terms like “company name review”, “company name refunds” or “company name scam”. Often reviews are posted in trading forums, these can be found by searching for “trading forum”.
5. In advance try and find out exactly who will be presenting the seminar. The last thing that you want is a professional “teacher” presenting a seminar on trading, what you want is a “trader” who makes his living by trading and only does a few seminars a month out of interest and for personal reasons, not because they need the money.
6. If you are buying an online day trading or investing course where the content is 100% viewed online you should get at least a 30 day 100% cash back guarantee, if not stay away.
7. If you are buying a course or trading seminar in which DVD’s and manuals are being shipped to your house, again you should expect a 30 day 100% money back return policy, less shipping and handling, again if not stay away.
8. It’s very likely that you will have questions after taking either the live or online course or watching the DVD’s, make sure that you will be able to ask questions and have them answered, either one on one or in a forum setting.
9. Last, but not least, before buying do a lot of window shopping. The price for trading seminars, either stocks, options, Forex or futures varies widely from $50 for an ebook to over $25K for a comprehensive set of training. You may be able to find the same material much cheaper at a different company.
Also be aware that day trading education and seminar companies are always running specials and offering discounts, before you buy search the internet carefully for any deals and also call the company directly and ask for a low price guarantee. In other words make sure that you are paying the lowest price that they are offering the product for.
A756452359
Join us for this segment entitled Mad Charts. During this video we put Jim Cramer’s picks to the test against our Wizetrade Stocks charts. This is one of the most popular trading shows on Wizetrade TV – you won’t want to miss it!
Today we look at another five stocks that Cramer picked. We have LPS, KMP, ETN, AMD as a Buy from Cramer and TKR as a Sell. Our Wizetrade experts evaluate his picks and give him a ‘Thumbs Up’ if the charts agree and a ‘Thumbs Down’ if the charts don’t agree. The Wizetrade charts give a ‘Thumbs Down’ to all the Buy picks and a ‘Thumbs Up’ to the Sell pick.
Visit Wizetrade TV at www.wizetradetv.com and take advantage of the FREE 30-day trial offer. No credit card required!
Duration : 0:2:51
Join us for this segment entitled Mad Charts. During this video we put Jim Cramer’s picks to the test against our Wizetrade Stocks charts. This is one of the most popular trading shows on Wizetrade TV – you won’t want to miss it!
Today we look at another five stocks that Cramer picked. We have LPS, KMP, ETN, AMD as a Buy from Cramer and TKR as a Sell. Our Wizetrade experts evaluate his picks and give him a ‘Thumbs Up’ if the charts agree and a ‘Thumbs Down’ if the charts don’t agree. The Wizetrade charts give a ‘Thumbs Down’ to all the Buy picks and a ‘Thumbs Up’ to the Sell pick.
Visit Wizetrade TV at www.wizetradetv.com and take advantage of the FREE 30-day trial offer. No credit card required!
Duration : 0:2:51
http://www.investoreducationpro.com We offer day trading education. Including internet stock investing, how to make money in the stock market and investing in the stock market for beginners.
Duration : 0:3:38
http://www.FreeInvestingLessons.com – Over 30 FREE Stock Investing Videos! good stocks to invest in, investing fundamentals and investment guide is discussed. http://www.FreeInvestingLessons.com
Duration : 0:3:41
