Comments on: The gut test: Determining your level of risk tolerance http://www.bluntmoney.com/the-gut-test-determining-your-level-of-risk-tolerance/ Wed, 12 Oct 2011 07:20:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: ciwood http://www.bluntmoney.com/the-gut-test-determining-your-level-of-risk-tolerance/comment-page-1/#comment-5762 ciwood Mon, 12 Feb 2007 13:44:05 +0000 http://www.bluntmoney.com/the-gut-test-determining-your-level-of-risk-tolerance/#comment-5762 Amateur investors (most of us) buy high and sell low because we allow emotion to control us, both when buying and when selling. Controlling risk involves picking investments thru diversification that will keep us from panicking when the market is dropping and give us courage to continue investing. The suggestion that young people should be 100% in stocks ignores human behavior. I encourage all of my students to pick a balanced portfolio that smoothes out the highs and lows and allows them to control their fear of market crashes as well as get-rich-quick stocks. Buying low and selling high is easy to say and almost impossible to do because of our emotions. To become a successful investor, diversify so you can sleep at night. I suggest Scott Burns Couch Potato Portfolios but remember, KISS. If you do not want to spend your life monitoring investments, keep it simple. http://assetbuilder.com/?p=972 Amateur investors (most of us) buy high and sell low because we allow emotion to control us, both when buying and when selling.

Controlling risk involves picking investments thru diversification that will keep us from panicking when the market is dropping and give us courage to continue investing.

The suggestion that young people should be 100% in stocks ignores human behavior. I encourage all of my students to pick a balanced portfolio that smoothes out the highs and lows and allows them to control their fear of market crashes as well as get-rich-quick stocks.

Buying low and selling high is easy to say and almost impossible to do because of our emotions. To become a successful investor, diversify so you can sleep at night.

I suggest Scott Burns Couch Potato Portfolios but remember, KISS. If you do not want to spend your life monitoring investments, keep it simple.

http://assetbuilder.com/?p=972

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