Day 7: How to Know If You Investments are Safe or Risky

Weather you are new to investing or have been doing it for years its time to realize that the all types of investing markets have changed and its time to reevaluate or learn what your risk appetite is.

Many people say they only invest what they are comfortable with losing.  However, sadly many of my clients come to me after they have had a loss only to have found out that saying it, meaning it and living it is very different.

In the first trading lesson on my website, I explain that good traders and investors need to leave their ego at the door. Most people feel their risk appetite is much higher then it really is. I teach all my clients to step back and think if every penny of this investment were lost how would it affect you life. At first the answer is always the same. “ It will not. I can handle it “ For my married clients I ask them how will their spouse handle it, will this investment bad or good put a strain in the relationship, will it alter the way you live , will it effect your kids future and MOST of all how will this investment effect your every day thinking.

For all investments, including trading, you should not lose any sleep, have seconds thoughts, or alter your life in any way shape or form. As a culture we all want to be able to tell people we made a killing or how you had an investment of a lifetime. But remember, in your lifetime you will make both good and bad investments. The key is to never make one that, if it goes wrong, can have a time line shift in your or your family’s future

Investing, like all things in life, is learned.  No one just wakes up one morning and is a super star. For those of you just starting out in investing and trading, start with a small amount of money.  Your skill level will grow over time. You will learn from mistakes that happen as well as things that are out of your control. You will see you skill level rising as issues happen - not only how you react but how quickly. Great investors and traders handle issue on the fly with confidence knowing that whatever come across their path they can deal with and many times work to their advantage.  Being aware and properly managing your risk is important to keep your mind at peace, allowing you to make rational decisions instead of emotional and panicking decisions.

Investment Risk Level Checklist:

1) Is this money really money that can be forgotten about if lost
2) What is the reason for this investment –
3) Who brought this investment to you and what is their track record
4) Is this investment based on an emotional reaction or logic
5) Take you ego out and look at 1-4 again
6) Think of a worst case and can you live with it
7) Is there a way out of the investment if it starts going bad
8) How will you get out
9) Are you prepaid to hold the investment longer then the original plan
10) If all these add up to a yes then you are ready to make the next step

2 Users Collected

Post Topics

Post Details

Market Merchandise: Hedge Fund, Mutual Fund, Futures, Options, Stock,
Players: Trader, Investor,
Styles: Trading, Investing,
Skills: Risk Management, Portfolio Management, Position Sizing,

Download Our Free eBook

25 Stock Market Indicators To Know

And subscribe to our MarketHeist Guides newsletter!

Free Brokers, Software, & Tools to Start.

Start with Brokers that have free accounts and professional grade software. Software that's the same whether you're practicing with fake money or trading real money.

Submit a Service

Profile Photo

TD Ameritrade Online Broker

With free thinkorswim, Trade Architect, & mobile software. Practice with virtual money. Invest and trade in stocks, ETFs, mutual funds, bonds, options, futures, and forex. No minimum and no maintenance fees. $0 to start.

☆ Collect Launch

Profile Photo

tradeMONSTER Online Broker

Free browser & mobile software. Easy to use technology including strategySeek and paperTRADE. Invest and trade in stocks, ETFs, mutual funds, bonds, and options. No minimum and no maintenance fees. $0 to start.

☆ Collect Launch

Profile Photo

optionsXpress Online Broker

optionsXpress offers an innovative suite of online brokerage services for investor education, strategy evaluation and trade execution. No minimum requirements.

☆ Collect Launch

Learn The Business. Take A Course.

What is the market and how it works
Finding Opportunities (with Technical Analysis & Fundamental Analysis)
Planning & Safety (with strategies to make smart decisions.)
Plan Execution: Buying & Selling

Submit a Service

Learn Stocks

Profile Photo

Investools Investing Foundations Program

Get trained in the foundations of the stock market and stock trading with two courses, a wealth of easy-to-use tools, and top-tier coaching support, in the program that helps you start managing your own portfolio. In the Investing Foundation Program, you’ll enjoy live and online workshops that can help you quickly overcome fears and learn […]

☆ Collect Launch

Learn Options

Profile Photo

OptionsAnimal Apprentice Options Education Program

Description Build your knowledge from the ground up. Understand key concepts and learn the basic spread trades that will give you a foundation to trade successfully. Learn how to properly structure a trade using the Protective Put, Covered Call, Collar Trade as well as applying the Straddle/Strangle. Trade Adjustment Spread Trades OptionsAnimal Trader Professional Program […]

☆ Collect Launch

Learn Futures

Profile Photo

OpenTrader Professional Training Program

The industry’s only training program built by professional full-time traders. You used to have to get hired by a professional trading firm to get world-class training. Not anymore. If you’ve been a losing trader, getting beaten down by the market again and again, low on confidence and full of doubt, things are about to change […]

☆ Collect Launch

On-The-Job Training. Earn While Learning.

Follow Live Trades, Step By Step
Detailed Trade and Market Analysis
Explanations of Strategies and Tactics
Questions Answered in Webcasts & Chatrooms
Learn by Copying The Pros At Every Step

Submit a Service

Learn Stocks

Profile Photo

Mish’s Market Minute Premium Stock Picks Video Subscription

Live-in-the-market instruction showing you how to trade in the afternoon the choice stock and ETF picks vetted by MarketGauge’s tools earlier in the day. Video up to 15 minutes: 4 times a week (M/T/W/Th) by 1:30PM ET $124.97/month Includes ETF Monitor & Nuggets List Private real-time Twitter Alerts 2 week FREE trial Learn as Mish: […]

☆ Collect Launch

Learn Options

Profile Photo

stockguy22 Live Trading & Education for Part Time Traders

What You’ll Get Learn stocks and options trading at your own pace from a group of full time traders dedicated to teaching through live trading, education, and mentoring.  See how trading is done methodologically as an occupation on a daily basis, from beginning to end.  Start with the daily in-depth analysis of stocks, the overall […]

☆ Collect Launch

Learn Futures

Profile Photo

Emini Wizard Trading System & Live Trading Chat Room

Thanks for considering The Emini Wizard System: This system is available for purchase for people who want to make a one time investment for the entire program. You get: Access to the Member’s website Spreadsheets Common plays Special plays Trade logic explained Chart patterns Chart settings we prefer Separate active chat area (30 days free […]

☆ Collect Launch

Some Partners We've Worked With

  • Download Our Free eBook

    25 Stock Market Indicators To Know

    And subscribe to our MarketHeist Guides newsletter!