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Stock Market Investing For Dummies

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Risk tolerance is critical for online stock market investing. When you’re just beginning to invest in the stock market, you’ll discover that each person has a risk tolerance that should be honored and …

Risk tolerance is critical for online stock market investing. When you’re just beginning to invest in the stock market, you’ll discover that each person has a risk tolerance that should be honored and taken into account. A professional financial planner worth his salt must understand this so he can help you determine your risk tolerance. Then, that person needs to help you ascertain which investments don’t exceed that risk level.

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  • 1. Stock Market Investing for Dummies by Korprit Zombie Risk tolerance is critical for online stock market investing. When you’re just beginning to invest in the stock market, you’ll discover that each person has a risk tolerance that should be honored and taken into account. A professional financial planner worth his salt must understand this so he can help you determine your risk tolerance. Then, that person needs to help you ascertain which investments don’t exceed that risk level. Some people think that risk tolerance is related only to your emotional reaction to investing.That’s just not true. There is a lot involved in deciding your risk tolerance, and emotions aren’t the only factors involved.
  • 2. Ascertaining your own risk tolerance, with regards to online stock market investing, requires that you consider multiple factors. One of those factors being that you know how much investment capital you have available, and you also have to be totally cognizant of what you are trying to achieve financially. For example, if you plan to stop working in 13 years and you haven’t even started saving for retirement yet, you will need to keep up a high risk tolerance and do some hardcore investing to have enough cash to retire. Conversely, If your investing begins when you’re 20, your online stock market investing risk tolerance level can stay low. Getting into the habit of investing early in life will allow you to let your money grow over time. When you combine this with what you know about your emotional
  • 3. reaction to financial issues, the right investment recipe will become obvious. It’s hard to ascertain this for yourself, so experts recommend that people use a reliable professional who can expertly assess you risk tolerance and assist you with selecting appropriate investment opportunities. Knowing your risk tolerance will help you establish an investment style and help you feel confident when you and your broker make investment decisions. Even though there are myriad investment types, there are really only three specific investment styles - and those three styles tie in with your risk tolerance. Those styles are commonly known as moderate, conservative and aggressive. But I will save the explanation of those for another article. Those will be clarified in a future article.
  • 4. From: AdvanceStock.com

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