STRATEGY AND STYLE OF MONEY.

 Because investing is not a sure thing in most cases, it is much like a game – you don’t know the outcome until the game has been played and a winner has been declared. Anytime you play almost any sort of game, you have a scheme. Investing isn’t any different – you require an investment scheme. Knowing what your risk tolerance and investment style are will help you choose investments more wisely. While there are many different types of investments that one can make, there are really only 3 specific investment trends – and those 3 trends tie in with your risk tolerance. The 3 investment trends are conservative, moderate, and aggressive.

An investment scheme is basically a plan for investing your cash in various sorts of investments that will help you meet your financial goals in a particular amount of time. Each sort of investment contains individual investments that you must select from. A clothing store sells clothes – but those clothes consist of shirts, pants, dresses, skirts, undergarments, etc. The stock exchange is a type of investment, but it contains assorted sorts of stocks, which all contain different companies that you are able to invest in. If you haven’t done your research, it may quickly become very confusing – merely because there are so many assorted sorts of investments and individual investments to select from. This is where your scheme, combined with your risk tolerance and investment trend all come into play. If you're new to investments, work closely with a financial planner before making any investments. They'll help you develop an investment scheme that won't only fall inside the bounds of your risk tolerance and your investment trend, but will also help you accomplish your financial goals. Never invest cash without having a goal and a scheme for reaching that goal! This is essential. Nobody hands their cash over to anyone without knowing what that money is being used for and when they'll get it back! If you don’t have a goal, a plan, or a scheme, that's essentially what you're doing! Always start with a goal and a scheme for reaching that goal! Naturally, if you find that you've a low tolerance for risk, your investment trend will most likely be conservative or moderate at best. If you've a high tolerance for risk, you'll most likely be a moderate or aggressive investor. At the same time, your financial goals will likewise determine what trend of investing you utilize. If you're saving for retirement in your early twenties, you should utilize a conservative or moderate trend of investing – but if you're attempting to get together the funds to buy a home in the next year or two, you'd wish to utilize an aggressive trend. Conservative investors wish to maintain their initial investment. Put differently, if they invest $5000 they wish to be sure that they'll get their initial $5000 back. This type of investor commonly invests in common stocks and bonds and short term money market accounts. An interest earning savings account is really common for conservative investors. A moderate investor commonly invests much like a conservative investor, but will utilize a portion of their investment funds for higher risk investments. A lot of moderate investors invest 50% of their investment funds in safe or conservative investments, and invest the remainder in riskier investments.

An aggressive investor is willing to take risks that other investors won’t take. They invest higher sums of money in riskier ventures in the hopes of achieving larger returns – either over time or in a short amount of time. Aggressive investors often have all or most of their investment funds tied up in the securities market. Again, determining what trend of investing you'll utilize will be determined by your financial goals and your risk tolerance. No matter what type of investing you do, however, you should cautiously research that investment. Never invest without having all of the facts!

                                                                 Wrapping Up ON INVESTING...

Along the way, you may make a few investing errors, however there are huge errors that you absolutely must avoid if you are to be a successful investor. For example, the biggest investing mistake that you could ever make is to not invest at all, or to put off investing until later. Make your cash work for you – even if all you can spare is $20 a week to invest! While not investing at all or putting off investing until later are huge errors, investing before you are in the financial position to do so is another huge mistake. Get your present financial situation in order first, and then start investing. Get your credit squared away, pay off high interest loans and charge cards, and put at least 3 months of living expenses in savings. Once this is done, you're ready to start letting your cash work for you. Don’t invest to get rich quick. That's the riskiest type of investing that there is, and you'll more than likely lose. If it was simple, everybody would be doing it! Rather, invest for the long term, and have the patience to weather the storms and allow your cash to grow. Only invest for the short term when you know you'll need the cash in a short amount of time, and then stick with safe investments, such as certificates of deposit.

Don’t put all of your eggs into one basket. Scatter it around assorted types of investments for the best returns. Likewise, don’t move your cash around too much. Let it ride. Pick your investments cautiously, invest your cash, and allow it to grow – don’t panic if the stock drops a few dollars. If the stock is a stable stock, it will go back up. A common error that a lot of individuals make is thinking that their investments in collectibles will truly pay off. Again, if this were true, everybody would do it. Don’t count on your Coke collection or your book collection to pay for your retirement years! Count on investments made with cold hard cash rather.