English: Investment Process Focused on Risk Measurement & Management (Photo credit: Wikipedia) |
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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