We
don't believe in the myth that everyone needs a paid professional
advisor in order to succeed in the investment world. It's true that that world is massive, complex and loaded with pitfalls.
But the mildly educated investor can handle all those risks by following
five simple risk management rules.
1). Buy quality stocks that are supported by expert
analysts such as those in Value Line Investment Survey, available
at many public libraries, and quality stock funds that have good
long-term performance records. Don't speculate in unproven securities.
2). Stay well diversivied. Don't put all your eggs
in one basket.
3). Make sure your portfolio contains a number of stocks
paying good dividends, which serve as a safety net as stock
prices fall.
4). Set a long horizon when investing. Practice
patience. Don't react to every lull in the stock market. That market
never goes straight up day-to-day, but over the long run cautious,
educated investors have made money in stocks.
5). Be on your guard. Don't be complacent over
what you own. Keep an eye on changes, but don't become obsessed
with trading.
INVESTMENT EDUCATOR can help you comply with these
rules.
Personal Investment Education is a home-based business founded by Cliff and Fran Pletschet. Their main goal has been to encourage people to educate themselves so they can become independent investors and take charge of their money. P.I.E. is currently run by Fran Pletschet and her son Bernie. Co-founder and longtime Editor Cliff Pletschet passed-away in August 2010.vfdplki