Diversifying your risk in the stock market 27 Articles

by Dorian Wales

Investment Basics Diversification as a Tool to Minimize Risk Think about betting 10,000$ on one coin toss with the possibility of winning 25,000$ and loosing everything. Now think about betting 1$ on each of 10,000 coin ...read more

by Paul Lines

Before you even begin to invest in the stock market, the first step in the process is to understand and quantify the risk. As the advertisements say, the stock market can go down as well as up. Thus it is important to ensu...read more

by Richard Ruscitto

Imagine for a second that our economy is slowing. Inflation is high, unemployment is rising, and the value of the dollar is not holding up as well as it should (This shouldn't be too difficult to imagine). A stock like G...read more

by A.W. Berry

Investment diversification is the spreading of investment capital through multiple financial instruments and/or economic sectors. An example of diversification is stock ownership across a number of industries such as oil,...read more

by Kelly Lucas

Diversification: Never put all your eggs in one basket. The stock market goes up and it goes down. Some people make money, while others lose money. In order to realize a net gain in the stock market one must follow ce...read more

by JQ Adams

The United States economy is in a bit of a precarious position. The stock market is at a record high and interest rates are favorable, but the housing market is bottoming out and some economists fear that the declining val...read more

by Jack Thornton

Picture yourself back in 1997 with a few thousand dollars in hand that you want to put to work in the stock market. You pick a few tech stocks and watch them zoom higher and higher for the next few years until finally the...read more

by Christina Pomoni

Diversification leverages investment risk. A diversified portfolio allocates investment risk in different classes of assets offsetting losses from one asset with the gains in another asset of the portfolio. Risk diversific...read more

by Art Vandelay

If you are going to invest in the stock market, the best way to prevent your portfolio from flopping is diversification. In investing, the phrase, "putting all of your eggs in one basket" refers to a simple portfolio of o...read more

by Erik Van Tongerloo

Diversifying your risk in the stock market is the key to reach a high return of your investment. Nobody can predict the future of their investments but need to understand that the stock market can be very volatile. Underst...read more

by A. Major

As a self-directed novice investor, with no degrees in business administration or economics, I feel rather intimidated to be "playing with the big dogs", but at the same time would like to share my experiences by giving my...read more

by Andrew Porter

The easiest way to reduce the risk of your investments is to build a "balanced" portfolio: a mixture of different uncorrelated asset classes. Most investment portfolios are highly correlated to just the stock, bond or prop...read more

by Malabika Ray

Diversifying your risk in the stock market Investments in the stock markets usually give much higher returns than any other form of investments. But it is also associated with higher potential risk than any othe...read more

by James Smith

There are few things that grab your attention more in life than losing your hard earned money in the stock market. Investing in the stock market can provide real rewards for the knowledgeable investor. However, the inexp...read more

by Channing Merced

We have all heard the old saying "Don't put all your eggs in one basket". As simple as it sounds it is true. Now I am not suggesting mutual funds by any means. When diversifying it's important to put your money in stocks w...read more

by Andy Lim

Before you start to invest into the stock market or any investment. Is imperative to have set aside 6 to 12 months of monthly income as emergency fund. Also the importance of insurance cannot be overlooked. I assumed you w...read more

by Kevin Thalersmith

To quote on well known financial pundit, "Diversification is the only free lunch." In the stock market, people are consistently trying to reduce the risk they have in the overall market. One way investors try to prot...read more

by Geoff George Paxton

Why you should diversify your risk in investing: Your approach to investing-and your management of your investments-should be driven by your risk tolerance. Risk tolerance ranges from aggressive to conservative, in 5 sub-...read more