So many people invest, yet so few understand how investing really works. Let’s uncover the secret: Investing is simply finding a way to get paid for taking calculated risks...
Monday, October 6th 2003, 5:42AM
by The Landlord
Smart investors know how much risk is appropriate for them, and they don’t exceed that level. They realise that risks come in many forms, and there is no way to totally escape them. Even if you invest in government-guaranteed bonds, you are taking a risk, as we’re about to see.
If you can recognise risks, you can manage them with relatively simple solutions. But too many investors underestimate the importance of doing this – and it’s one of the most important tasks investors should do.
In this first article in a two part series, we outline the major risks any investor takes and give you some pointers on how to manage them.
