Qwoter » Understanding the Risks

Asset Protection

Jennifer — Fri, 24 Sep 2010 17:09:13 +0000

As an entrepreneur, you surely understand that owning and operating your own business can be burdened with risks and financial losses. Generating a profit is not easy, while turning a profit is a real task. Asset protection is necessary to secure your business from lawsuits and claims.

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Stock Market Risks

Jennifer — Wed, 27 Jan 2010 17:57:26 +0000

Investing in the stock market is burdened with worry, for a good reason. Stock market risks are everywhere. If you mislay half of your investment, you must be able to double your returns to breakeven or earn some. While you don’t want to lose money, regrettably, the risks involved in the stock market are at all times present. However, without facing the risks, you can’t anticipate reward. Thus, successful investors execute risk management techniques to minimize losses. Handling risks in the stock market begins with recognizing the type of risk and acting to alleviate their unconstructive impact on your investment portfolio.

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Investment Gambling

Qwoter — Tue, 21 Aug 2007 18:00:00 +0000

Once you have a sense of the money you can spare for investing, you’ll need to decide just how much risk to take with those funds. Unfortunately, all too often people skip this step and don’t follow proper investment advice. They think of investing money like gambling money. Once they decide how much they’re willing to play with, they’re willing to risk it all.

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10 Tips to Eliminate Risks

Qwoter — Mon, 19 Mar 2007 12:00:00 +0000

Investment planning is almost impossible without a thorough understanding of risk. There is a risk/return trade-off. That is, the greater risk accepted, the greater must be the potential return as reward for committing one’s funds to an uncertain outcome. Generally, as the level of risk rises, the rate of return should also rise, and vice versa.

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Are You Over-Diversified?

Qwoter — Mon, 22 Jan 2007 12:00:00 +0000

Anyone who has spent much time reading about personal finance knows the value of diversification in a portfolio. If you put all your money into just one or two investments – stocks, bonds, or anything else – you run the risk that something will go wrong and wipe out a big chunk of your nest egg. (Enron, anyone?)

Read more on Are You Over-Diversified?…

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What are the Risks of Investing?

Qwoter — Sun, 10 Dec 2006 03:00:00 +0000

Like anything in life – to every positive there is always a negative no matter what the situation is, or the circumstances are. The best investment advice that you can ever receive is that it is never unintelligent to be overly cautious - after-all, you are dealing with your own money and want to ensure that you get a good return for sacrificing it. The element of chance in investing is referred to as the risk of investing and it is essentially the deviation away from your original investment expectations.

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What is the Risk-Reward Concept?

Qwoter — Sat, 09 Dec 2006 19:00:00 +0000

Put simply this concept tests the fundamental reasoning behind each individuals investments - Do you know what your personal risk tolerance is? Or the degree to which you will accept a certain level of risk for a given level of return.

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What is Risk really?

Qwoter — Sat, 09 Dec 2006 19:00:00 +0000

Risk is composed of a two values – an intrinsic value and a time value. The intrinsic value is the amount of money that you have available to invest – the more money you have, the more risk you are able to absorb. This is a relativity concept that is motivated by being able to accept a greater level of loss when a larger monetary base is available.

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What is the Risk of my Investments?

Qwoter — Sun, 10 Dec 2006 03:00:00 +0000

Once your risk tolerance, intrinsic and time value of risk have been derived you are able to use asset allocation in order to establish what are the best investments for you. Asset allocation is the process of deciding how to distribute your wealth among both different countries and asset classes for investment purposes. The asset class is comprised of securities that have similar characteristics, elements and risk-reward concepts. Below are some examples high, medium and low risk assets:

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What is Diversification?

Qwoter — Sat, 09 Dec 2006 19:00:00 +0000

Diversification is one of the fundamental tools in our arsenal of reducing risk and is the arguably the most important. Diversification is used in a portfolio (group) of investments in order to reduce the unsystematic risk level that was introduced previously.

Read more on What is Diversification?…

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