Sunday, January 18, 2009

Can Calculated Risk Taking Be The Key To Financial Security?

By Rahn Naro

There are many different ways and methods of investing, and often they will depend on your own personality for investing. Many of us will have a friend or associate who is very aggressive with their investments, while others are very conservative, and struggle even to invest in low risk ventures.

When you make the decision to invest, take the time to analyze your own personality, the amount of money you can invest, and your own financial goals. While there is no single method right for everyone, it's wise to be aware of market possibilities. While conservative investments are not immune to downturns, they will neven experience the possibility of 500% growth in a week available to penny stocks.

All of this wish to be part of the American dream, but none want that dream to turn into a nightmare. In order to ensure your success, first determine your own investment personality, your bankroll, your short-term and long-term goals. Understand that no matter who you are, or what you've learned, there will always be winners and losers, that is simply the way the market works. If you're on a loser, get out fast and live to invest another day.

Our positions will rise and fall based on the economic and global climate, or possibly because of a small investment mistake such as jumping onto a "Buying Frenzy" too late, then watching it tank. Rather than beating a dead horse, learne from your mistakes and live to invest another day.

Here are a few guidelines...

Will you need your money back quickly or are you investing for retirement? No matter the type of investor, we're all hoping for increase over time, but many would like that increase to happen rapidly. In order to experience a rapid ROI, it's mandatory you get into the market at the right time with the greatest opporutnity for upside potential. That might seem obvious but not surprisingly many investors get blindsided by the market.

Do you have an investment specialty? This author has spent years learning the pennystock niche, assembling a wealth of data, information, and contacts in that industry; all necessary to make the proper moves at the proper time. Determine, which niche you want to invest in, currencies, commodities, mutual funds, or established companies, then learn as much as you can about that industry.

what is your area of interest concerning investing? While we believe that penny stocks have the greatest opportunity for quick ROI (return on investment), you may have a leaning towards other areas of which there are many. It would be In your own best interest to learn as much as possible about your area of interest, since few of us have the time or inclination to learn every area of investing.

Becoming an investor in today's market is a challenging enterprise, however using sound strategies and proper picks, your upside potential can be enormous.

Take the time to determine your own investment personality, then decide if you're prepared and have the time to do your own research, or whether it would be smarter to subscribe to a quality investment newsletter.

Take the time today, even before you're ready to invest, to set up your brokerage account and fund it. This will allow you to be ready to move when the timing and pricing is in your favor.

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