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Precautionary Measures for Investment Opportunities.

  • Date Submitted: 05/09/2010 12:43 AM
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Precautionary measures for investment opportunities.
A number of investment opportunities are available in the world. The need is just to pick the best suitable one and invest in it. It is always advised to take all precautionary measures before making any investments. The precautionary measures can be any of the following.
A. Check the feasibility of the investment opportunity.
B. Read the offer document completely and carefully.
C. Look for the government backing on such investments.
D. Calculate the returns and compare with the expected returns.
E. Take suggestions from some experienced group of intellectuals.
F. Make investments in steps and if expected returns are received than make further investments.
G. Investment in good stocks should be preferred even if the rates are high, instead of low cost stocks whose value may degrade in future also
H. Take the final decision at your own risk.
I. Never held anyone else responsible for any loss. This will help improve old drawbacks and make better decisions in future.
J. Buy and sell transaction's hard copy should be kept safe to skip any fraudulent case.
K. Thoughtful and careful investment is advised

DON'T FREAK OUT: During bear markets like today it's easy to freak out as we watch stock prices fall almost on a daily basis. Fear kicks in and we think, sell now and cut our losses. The worst thing to do is sell, hide the money in cash and wait for things to turn around. Why? Because more often than naught things turn around and all of a sudden we're back in after prices have raced back up.
Don't act on fear. If you have an investment account that is well diversified and designed with long term objectives in mind, chances are that your portfolio should be left alone.
EUPHORIA: Just the opposite of freaking out. During bull markets your portfolio is going through the roof. Everything you touch turns to gold, equities are surging and all common sense goes out the window.
As the equity markets...

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