Rule Number One of Investment: Survive!

Posted by KS on May 9th, 2009 — Posted in Your money and your world

The stock market in the United States is full of nail-biting individuals who look at the rates, on tenterhooks. When the rates go up, they declare a bull run. When the rates go down, they sell off their stocks like there’s no tomorrow to avoid losing money. Is this a healthy practice, at all?

No. Risk-taking should only be done if you can really afford it. If you’re an investor, make sure you know how to survive first before you imitate other reckless investors. Don’t be fooled by companies like Dell and Sony; look what happened to them. When something goes wrong, even a small change in the environment, values go down fast.

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