If you’ve ever heard “don’t put all your eggs in one basket”, it’s used to describe a simple investing principle known as diversification.
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The fact is, there are more people right now who are investing, or at least they think they are investing, than in any time in the past. Most of these people however are actually gambling without them knowing it.
Many option traders buy and sell these instruments to earn profit in the form of the difference between the exercise price and the ending stock price, commonly known as premium. There are many types of options, and almost all assets with market value can be subject to option trading. An option can provide a much higher return on investment than stocks and bonds, so the risk it carries is considerably higher as well.
Many of us are conditioned to think that all risk is bad. We hear about putting our money where it can grow “risk free.” If you really want to get ahead, you need to stop playing it safe all the time. Here are 3 good reasons to take more risks.
Wondering what your risk tolerance is? We have a comedy quiz for you to try out. Enjoy!
But how do you determine what you should invest in? That’s where this quiz comes into play. After taking this risk tolerance quiz, you’ll be able to determine just how much risk you’re comfortable taking on.