Decisions: thrill seeking and other plans
Avoiding near-certain disaster is usually a better investment plan than recklessly jumping into situations.
06:33 14 July 2013
There are times when we might look over decisions of our past with regret, or wish we had a second chance to do things right. Lately people are still jumping off a bridge in Cumbria where someone previously died in a similar stunt.
We might wonder about the decision.
In money terms, that could be the equivalent of taking hard-earned money and investing it in a company that has announced it is going bankrupt for example. Pay attention to some of these factors to try and avoid potential investment disasters:
- Hold onto your money—that is counter-intuitive when it comes to investing since the whole idea is to spend money so that you can achieve a return on your investment. Make sure you don’t invest when you’re feeling desperate, and if you can’t afford to lose the money completely, don’t invest it. Good investments take time to grow, and fast turnaround is never a guarantee because the higher rate of return is for higher-risk investments.
- Keep an eye on the market—if you are investing in stocks keep an eye on the market. You might not have to spend a ton, but you also don’t want to waste your money by putting it in some obscure stock. The only way you’ll make a lot off that type of investment is if it’s a new company with a good marketing team and a viable product. Do your homework before committing to such an investment, and as always consult a financial advisor.
- Do not panic—it’s inevitable that you will lose some money if you are dealing with any kind of aggressive investment plan. This is when knowledge of the industry you invested in, as well as the company’s prior record should be considered.