September 26, 2010 | In: stocks
Margin investing is speculative and involves high risk. That is why most investors should not buy stocks on margin. But for those who do, NASD Regulation, Inc., has issued important investor guidance about purchasing securities on margin, and the risks...
This is a reprise of an investment tip that I did about 4 years ago. I thought it was especially topical with the current market volatilty.
One of the biggest mistakes that individual investors make is to misjudge their investment time frame. They make...
Many analysts felt that the bear market of 1998 was caused by economic problems in Russia, Asia, and Latin America. They pointed out that the United States is really part of a global market, and that the fortunes of companies here were linked to events...
Risk: The value of your investment can go down.
Reality: Time mitigates risk. Over the past two decades there’s been just one five-year period when the U.S. stock market lost ground.
Risk: Your investment isn’t guaranteed, like a certificate of...
Reaching a decision to act or not to act (and those decisions carry their own potential risks and rewards) is the final step of the process. Some decisions are easy, some are more difficult. Once you feel you understand the risk/reward factors, you should...
Once you’ve identified a risk in Step 1, the next step is to understand it. How likely is it that the risk will occur? How severe would the impact be if it did occur? Some risks are likely to happen but have low potential impact (such as cutting...
The first step is to identify actions, inactions, and behavior that can lead to negative results or shortfalls. This is the most critical step, because it’s difficult to control or manage a risk on which you have not focused.
Here are a few risks...
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