I continue to blog on and off about investing.  That is expending money with the expectation of a profit or positive material gain.  Of course just expecting profit or material gain does not make it so.

Things to avoid

Obviously the number one event to avoid when investing is to have a return of less value or benefit than the original amount invested.  More simply stated “taking a loss”.

It is easy to conceptualize this goal, it is a little harder be confident in it’s achievement.  Simply stated, when investing you run a risk of loss  and taking steps to mitigate that risk is just prudent.

There are many approaches to mitigating risk.  Some common terms you have probably heard include diversification, hedging, insurance, guarantees and holding real property (e.g., gold bullion).  To nane just a few.

Top Risk Mitigator

My own personal approach to reducing  risk, the first thing I always do, is my own research, not relying on someone elses.  This does not mean other advice, research and consultation is not extremely valuable.

It simple means you are the one expending the money so only you can properly understand and accept the risk.  This is no ones decision but your own.

Regardless of any specific risk mitigation actions you might take (diversification, guarantees and so on) the first step toward risk mitigation is the expenditure decision itself.

My advice, never delegate that and never let anyone persuade you as to what is the best decision.  In this case, only you can choose wisely, it’s your money (of course it it all about you).