What is your investment style? If you are considering passive strategies, the most effective way to reduce risk is to not select particular stocks. This allows you to take more active or aggressive positions. This is a very powerful form of risk reduction. If you decide to take aggressive positions, be sure to limit your losses, and consider diversification. Learn more
To build a successful portfolio, an investor needs to know how to navigate the world of investment. It is a complicated world full of strategies and tactics. It is not easy to select the right strategies or investments to use. The key to selecting an investment for a successful, long-term investment is to decide how much risk you are willing to take in order to maximize your long-term investment returns. Investopedia is an invaluable tool for those who have a limited time for investing.