"No man can become rich without himself enriching others"
Andrew Carnegie



Thursday, September 6, 2012

Portfolio Management For The Under-30 Crowd

English: Investment Process Focused on Risk Me...
English: Investment Process Focused on Risk Measurement & Management (Photo credit: Wikipedia)
 Face it: as an individual under 30, you're not the average investor, and modeling your portfolio after that of your parents isn't always a good idea. In fact, doing so can cause you to miss some valuable learning opportunities and could even cost you money in the long run. If you want to make the most of your money, every decision you make about your portfolio is as important as the last. In this article, we look at the unique set of challenges involved in portfolio management for young investors and provide some advice to help you succeed.

Picking Stocks
Obviously, picking the right stocks is one of the most important aspects of investing intelligently. However, as a young investor, you have a lot less to worry about - namely retirement and wealth maintenance. Because preserving your nest egg has yet to be your first priority (you have plenty of years ahead of you for that), you can take on a greater amount of risk than your parents can. 

High risk certainly has some negative connotations, especially when you're talking about your money. Nevertheless, there are many advantages to dealing with riskier stocks. While higher risk investments do come with a greater chance of loss, they also come with a greater chance of gain. In other words, these stocks are subject to volatility. This is in contrast to more stable investments, such as those made in blue chip companies that generally have lower growth potential but also benefit from lower risk.  ... Continue to read.

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