| Looking for stock market info? In this article I am | | | | returns. |
| going to give you one must know stock market tip | | | | The best way to reduce risk is by diversifying. All this |
| and this is to reduce risk and diversify. | | | | means is that mix your portfolio between different |
| In this article I am going to give you all the stock | | | | investment vehicles so that you are protected from |
| market info you will need to be able to do this. | | | | risk. If one vehicle does poorly it will not affect your |
| Whenever you invest in anything you are exposing | | | | portfolio because your risk is spread out between |
| yourself to risk as investors it is our job to protect | | | | your various investment vehicles. Here are some |
| ourselves as much as possible from this risk. There | | | | things to keep in mind when diversifying. |
| are two basic kinds of risk they are. | | | | · Spread your portfolio between different |
| · Systematic risk - this is risk affects everything or | | | | investments such as cash, real estate, stocks, bonds |
| things you cannot protect yourself from, examples | | | | and mutual funds. |
| are things such as political upheaval in your country. | | | | · Choose securities with various levels of risk. You |
| · Unsystematic risk - this is risk that only affects | | | | don't have to always pick investments that are safe, |
| certain assets. You can protect yourself from this | | | | it helps to pick investments with varying rates of |
| risk by diversifying. | | | | return so that large profits will offset big losses. |
| Next we have what is called the risk reward | | | | · Spread your securities amongst different |
| tradeoff. Basically this means deciding how much risk | | | | industries, don't put all your eggs in one basket - |
| you are willing to take on versus how high you want | | | | don't invest everything in one industry. |
| your returns to be. The more risk there is the higher | | | | I hope you found this stock market info useful. |
| the returns will be and vice versa less risk equals less | | | | |