Basics of Investing
Learn how to choose investments and combine them into a portfolio with the potential to achieve what you want – whether it’s growth or safety. First, look at the risks associated with different types of investments. Then you can select and combine the choices that make sense for you.
Many people consider risk only in negative terms—something to avoid at all costs. But when you invest, risk is not only unavoidable, it’s actually necessary. It relates directly to your potential to not only lose money, but to make it too. The key is finding the right balance between the level of risk you can accept and potential reward.
It’s a bit of a worn-out phrase, but “don’t put all your eggs in one basket” is about the most universal investment advice out there. Spreading your investment eggs across multiple baskets is called diversification and it can help to manage risk.