The Investing Path

Learn the Do's and Don'ts of Investing. Take the Right Path.

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Don't Speculate With Your Investments

Speculating is not investing.  Investing is taking an acceptable amount of risk in order to reap a return.  Speculating is taking on an inordinate amount of risk for an unknown return.  Speculating is a great way to lose the money you've saved and invested.  If you really want to speculate, only allocate a small portion of your portfolio to it.  Speculation includes buying unknown stocks, options and shorting stocks.  Try to avoid these investments.  Speculative stocks usually do very well for a while, but because of lack of earnings and after a period of time people lose interest in them and their stocks almost always plummet.  Avoid speculation!

The Do's / The Right Path The Don'ts / The Wrong Path
Invest Early Don't Try to Time the Market
Invest Often Don't Trade
Understand the Compounding Effect of Money Don't Procrastinate
Find More Ways to Save Money Don't Give Up
Diversify Your Investments Don't Use Margin
Start With Simple Investments and Expand Don't Chase Hot Stocks or Sectors
Have a Financial Plan Don't Speculate
Manage Investment Expenses and Fees Don't Make Large Bets
Invest to Reduce Taxes Don't Use a Financial Planner
Invest Overseas Don't Be Too Conservative
Stick With It Don't Watch Too Closely
Learn to Do Your Own Research Don't Keep a Loser
Be Objective Don't Use Technical Analysis
Invest Don't Trade Don't Dip Into Your Savings / Investments
Sell if Fundamentals Change