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8. Do & Don’t (Trading / Investing).

Written By: admin on May 23, 2010 71 Comments

1. Should invest in knowledge because ignorance is risk. Knowledge is fundamental to invest.
2. Consider the return and the risk together as the high return always come with high risk; analysis of only the return without the risk will be misleading and struck with high-yield looks attractive.
3. Should diversify (Diversification) appropriate distribution of investments in securities to several different types is till a good way to reduce the risk. It will reduce the risk of individual securities to be unique.
4. Should do a Portfolio to suits yourself on lifestyle and financial plans in the future. Analyzing and understanding your own cycle is important. Do not invest by others because each person is unique and has different needs.
5. Should be a balanced investment decision. Not greedy, be careful and not be too afraid. Greed and negligence often bring many risks while the too afraid mind make you don’t dare to invest and you may lose profitable returns.

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