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Wednesday, September 15, 2010

What investing is

When it comes down to it, investing is more about seeing the future from the present before it actually happens and taking a position in that direction. From the perspective of the present, this is what is commonly referred to as risk.

Arguably, risk is a dividing factor between seasoned investors and beginners. Succeeding in investing is more than being lucky, intellectual arrogance, or a shot in the dark. While there are openings for the hope that parameters will turn in one's favour, it is nonetheless better to know as much information about an investment as possible. They include;

1. Personal comfort with investment type

2. Management ability

3. Level of disposable cash available

4. Personal income targets
Investing has benefits known and desired by all, but they also have their drawbacks. Assessing these will improve one's investing skill level significantly.

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