Fundamental strategies - managing risk
I have adopted Jason Zweig's three commandments of investing as a foundation for my investing strategies. They are all concerned with dealing with risk.
My three rules are:
1. Do not take any risk that you do not need to take.
2. Do not take a risk unless you are highly likely to be rewarded for taking it.
3. Do not put any money at risk that you can not afford to lose.
I have adopted Jason Zweig's three commandments of investing as a foundation for my investing strategies. They are all concerned with dealing with risk.
My three rules are:
1. Do not take any risk that you do not need to take.
2. Do not take a risk unless you are highly likely to be rewarded for taking it.
3. Do not put any money at risk that you can not afford to lose.