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2024 investment advice from Choratas Estates LLC

·2 mins

So, what do you need to start investing?

The first step is to figure out an investment strategy. This strategy will help you decide what percentage of your money should go into high-yield investments like stocks, commodities, and contracts for difference, and what portion should be in lower-risk investments. This mix helps create the best investment portfolio. You also need to decide if short-term or long-term investments fit your goals better. If you’re looking for extra income but want to keep working, long-term strategies are probably best. If you can dedicate a lot of time, short-term investment strategies might be the way to go.

The level of risk you can take depends on how much time you have to reach your financial goals. If you have years before you need the money, you can afford to invest in high-yield, higher-risk options because there’s time to recover from any losses. If you only have a few years or months, it’s smarter to go for lower-risk investments with more modest returns. A high-risk, high-return strategy might include a portfolio with more stocks or cryptocurrency CFD trading, while a low-risk strategy might have more defensive stocks and bonds.

Remember, there’s no exact formula for investing. It depends on your financial situation, goals, risk tolerance, and investment timeline. Every investment has risks along with potential benefits. The assets we’ve mentioned come with different levels of risk and potential returns. Here are the main risks involved in trading and investing:

  • Market Risk: The risk that the market price of an asset will drop, which is what most investors worry about.
  • Inflation Risk: This happens when inflation outpaces the return on your assets, which is common with many bank deposits right now.
  • Liquidity Risk: The risk of not being able to sell your investment when you want to, more common with real assets, and less so in financial markets.
  • Concentration Risk: The risk of having too much money in one type of asset.
  • Currency Risk: The risk that comes with investing in foreign assets, where unfavorable exchange rate changes can hurt your profit.

These risks can be actively managed with the right stock selection, diversification, and risk management strategies.

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