Investing without a plan can be like gambling. Individuals may be winning for a short amount of time, but cannot reasonably develop a long-term wealth portfolio. Brad Reifler offers wise advice on Twitter on how to be successful building your wealth.
House Has Decided Advantage Over Gamblers
Casinos make a living off individuals who enjoy the pleasure of gambling with their money. All the casino gaming odds are slightly skewed in favor of the house. The probability of you creating long-term wealth without an investing plan is quite low. You need to develop a plan.
This is one of the five tips offered by Brad Reifler from his About.me. Investors must start with a coherent Plan. Write down the amount of money you want to earn in one year’s time. List different investments for attaining that goal.
Conducting Trades Every Minute
High-frequency trading (HFT) has become a useful way to earn quick profits using high-speed computers. All successful investors follow the second tip from Reifler: Risk Management. Control how much you can lose on any one trade to ensure that you can continue to trade, even after losses.
Don’t put all your money in the stock market said Brad Reifler.
Diversification includes investment types and even geographical locations for the most advanced. You never know when one stock exchange may experience a severe downturn.
Buddy, Can You Spare a Dime?
Spare cash is called “liquidity” in the financial sector. The healthiest companies will have plenty of cash on hand in short-term checking and savings accounts. The money Reserve gives you the ability to make quick profits when once-in-a-lifetime opportunities arise.
Get to know your Fund Manager. Past returns are not guarantees of future success. Likewise, you will need a fund manager who shares your same interests, goals and risk management tolerance, according to Brad Reifler. This manager must respond to market changes as you would in order to truly reflect your investment goals.
Brad Reifler’s “5 Tips for Investing” was originally posted on Reuters. Adhere to these strategies to ensure that you always have the opportunity to increase your profits. Professional investors develop a plan giving them readily-available cash. They diversify their investments and balance their risk management tolerance to prevent catastrophes. Build up your wealth by learning from pros, like Brad Reifler. See more of what Brad’s done on his CrunchBase account.