Ten Things to Consider Before You Make Investing Decisions
1. Risk Vs Reward
It is important is that you take on calculated risk and stick to a risk/reward ratio suitable for your risk appetite.
2. Individual Risk Appetite
One man’s food is another man’s poison – the same goes for investment. What works for your friend may not be the best investment choice for you. The main reason could be you have a different risk tolerance, which may lead you to sell off the investment during volatile periods.
3. Investment Capital
4. Time Horizon
The investment horizon determines the investor’s income requirements and desired risk exposure, which then helps in choosing the appropriate investment product.