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Wednesday, May 9, 2012

Investing and Growing Older

I just wanted to share a nice tip, which is another key rule to remember if you want to invest in pretty much anything:

As you get older, you will take less risks.

I hope you keep this in your mind because if you don't, some major flaws can happen just because your investing strategy is really stupid.

When you are young, you have time to spare and you can invest in risky but high-return stocks such as budding companies, or fluctuating stocks that can make you lose more or hopefully, gain more.

I know this might not seem like much sense, but here's most basic root I will give you of what I am trying to say.

When you are young, you can live in a dump, or whatever and not care. Reason being, you are still young and it won't really affect much of what your future will be, but when you are old, you have to care a whole lot more. Don't you have a family to take care of? Don't you have a retirement to worry about? Your 401(k)?

Yes, being stupid and losing a lot of money when you try to invest in high-risk stocks is not as bad as if you were a teenager, but a lot worse if you are an adult.

Don't be the family that goes bankrupt because of ambitious investments.

At most be the teen that goes bankrupt.

Now, I'm not saying that you can't speculate and do something a bit outrageous once in a while later on in your life, but make sure that you are trading with the knowledge that you can, and most likely will, lose everything you put up.


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