Comments on: Are you a risk-taker? http://thebudgetingbabe.com/2006/09/22/are-you-a-risk-taker/ A personal finance blog for career minded women with small budgets and big dreams. Sun, 05 Aug 2012 15:47:43 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Stock Market Trading http://thebudgetingbabe.com/2006/09/22/are-you-a-risk-taker/#comment-3500 Stock Market Trading Tue, 08 Sep 2009 01:36:05 +0000 http://thebudgetingbabe.com/?p=240#comment-3500 Surefire ways to succeed in the stock market - know your niche, evaluate investment risk, diversify your portfolio and invest according to your risk.<br /><br />use the Risk management Pyramid concept.<br /><br />Base of the Pyramid -should consist of low risk investments like bonds, mutual funds, ETF's and others.<br /><br />Middle tier - consist of stocks, CD's and others<br /><br />Summit - consist of high risk investments such as option trading, collectibles and others.<br /><br />From there, you will have an idea on where to put your money and how much.<br /><br />If you are working with a financial advisor to help you with your investment, be sure that you invest according to what you think is best and not because your advisor tells you to. It is your money and you should be more involved in your investments. Also, choose an advisor that has years of experience in the trading floor. Surefire ways to succeed in the stock market – know your niche, evaluate investment risk, diversify your portfolio and invest according to your risk.

use the Risk management Pyramid concept.

Base of the Pyramid -should consist of low risk investments like bonds, mutual funds, ETF's and others.

Middle tier – consist of stocks, CD's and others

Summit – consist of high risk investments such as option trading, collectibles and others.

From there, you will have an idea on where to put your money and how much.

If you are working with a financial advisor to help you with your investment, be sure that you invest according to what you think is best and not because your advisor tells you to. It is your money and you should be more involved in your investments. Also, choose an advisor that has years of experience in the trading floor.

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By: outsourcing word http://thebudgetingbabe.com/2006/09/22/are-you-a-risk-taker/#comment-1655 outsourcing word Tue, 31 Oct 2006 04:29:00 +0000 http://thebudgetingbabe.com/?p=240#comment-1655 good site<br/>http://www.outsourcing word.org/ good site
http://www.outsourcing word.org/

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By: language http://thebudgetingbabe.com/2006/09/22/are-you-a-risk-taker/#comment-1654 language Tue, 31 Oct 2006 04:26:00 +0000 http://thebudgetingbabe.com/?p=240#comment-1654 good site<br/>http://www.info-language.com/ good site
http://www.info-language.com/

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By: fitness http://thebudgetingbabe.com/2006/09/22/are-you-a-risk-taker/#comment-1653 fitness Tue, 31 Oct 2006 04:25:00 +0000 http://thebudgetingbabe.com/?p=240#comment-1653 good site<br/>http://www.fitness-world.org/ good site
http://www.fitness-world.org/

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By: aishwarya rai http://thebudgetingbabe.com/2006/09/22/are-you-a-risk-taker/#comment-1652 aishwarya rai Tue, 31 Oct 2006 04:24:00 +0000 http://thebudgetingbabe.com/?p=240#comment-1652 good site<br/>http://www.aishwaryaraiworld.org/ good site
http://www.aishwaryaraiworld.org/

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By: bluto http://thebudgetingbabe.com/2006/09/22/are-you-a-risk-taker/#comment-1603 bluto Tue, 17 Oct 2006 15:51:00 +0000 http://thebudgetingbabe.com/?p=240#comment-1603 Risk tolerance comes in two parts, capacity to accept risk and willingness to accept risk. <br/><br/>Take for example Ms. Budgetbabe. She has tremendous capacity to take on risk (she's young, has few dependants, stable employement, reserve capital, etc). However, equally important is one's own internal willingness to take on risk. This is where the differences between men and women are quite marked. Men are generally willing to take on risk beyond their capacity while women dislike taking on risk upto their capacity. <br/>A decent advisor should have explained the two concepts (and their difference) to a client. They shouldn't push clients into risks they have no willingness to accept, they should explain that a client's willingness is quite different from their tolerance and let the client make an informed decision. Of course wise council is rare and should be valued. Risk tolerance comes in two parts, capacity to accept risk and willingness to accept risk.

Take for example Ms. Budgetbabe. She has tremendous capacity to take on risk (she’s young, has few dependants, stable employement, reserve capital, etc). However, equally important is one’s own internal willingness to take on risk. This is where the differences between men and women are quite marked. Men are generally willing to take on risk beyond their capacity while women dislike taking on risk upto their capacity.
A decent advisor should have explained the two concepts (and their difference) to a client. They shouldn’t push clients into risks they have no willingness to accept, they should explain that a client’s willingness is quite different from their tolerance and let the client make an informed decision. Of course wise council is rare and should be valued.

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By: G. http://thebudgetingbabe.com/2006/09/22/are-you-a-risk-taker/#comment-1602 G. Fri, 13 Oct 2006 18:52:00 +0000 http://thebudgetingbabe.com/?p=240#comment-1602 Very interesting. I think most of are risk tolerance comes from our parents. Very interesting. I think most of are risk tolerance comes from our parents.

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By: invest http://thebudgetingbabe.com/2006/09/22/are-you-a-risk-taker/#comment-1601 invest Tue, 10 Oct 2006 17:05:00 +0000 http://thebudgetingbabe.com/?p=240#comment-1601 I really enjoyed reading your blog and I bookmarked it! by the way if you are looking for <a HREF="http://www.nc-investment.com" REL="nofollow" rel="nofollow">investement</a> information check out my website! I really enjoyed reading your blog and I bookmarked it! by the way if you are looking for investement information check out my website!

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By: StealthBucks http://thebudgetingbabe.com/2006/09/22/are-you-a-risk-taker/#comment-1593 StealthBucks Thu, 28 Sep 2006 04:03:00 +0000 http://thebudgetingbabe.com/?p=240#comment-1593 I think that most planners overlay there own risk factor on to clients. This is probably a survival tactic as many advisors blew up or were arbitrated into oblivion after the dot.com disaster. If you are risky by nature speak up if you have an advisor. Good advisors are more likely to understimate a young persons risk tolerance, or accurately estimate what is too painful for you to acknowledge. Good luck.... I think that most planners overlay there own risk factor on to clients. This is probably a survival tactic as many advisors blew up or were arbitrated into oblivion after the dot.com disaster. If you are risky by nature speak up if you have an advisor. Good advisors are more likely to understimate a young persons risk tolerance, or accurately estimate what is too painful for you to acknowledge. Good luck….

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By: Steve http://thebudgetingbabe.com/2006/09/22/are-you-a-risk-taker/#comment-1590 Steve Mon, 25 Sep 2006 00:33:00 +0000 http://thebudgetingbabe.com/?p=240#comment-1590 It is so true that without risk there is no reward.<br/><br/>What is the worst that can happen? We lose some money and we make a mistake. money can be made again and mistakes can be learnt from. It is so true that without risk there is no reward.

What is the worst that can happen? We lose some money and we make a mistake. money can be made again and mistakes can be learnt from.

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