Balancing Your Return Ideals With the Realities of Risk
Step 1: How Do I Know What to Expect From an Investment?
Every builder starts with a foundation. If you are new to investing, you are building an investment portfolio, and you need to start with an investment foundation. That foundation consists of the basic investment principles.
Boiled down to its bare basics, investing concerns returns and risks.
How Do I Know What to Expect From an Investment?
Why Don't Investments Always Live Up to My Expectations?
How Can I Use Risk to My Advantage?
Are There Ways to Reduce My Risk?
How Do I Balance the Risks Against My Expectations?
An investor's return consists of current income, plus capital gains due to growth, minus any losses from the investment.
Return = current income + capital gains due to growth - any losses
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