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How To Succeed As An Aggressive Investor

Aug 17, 2007
Aggressive investment strategies are new ways of managing your investment portfolio and actively allocating the assets so that you can get the maximum possible returns from your investments. The target of aggressive investment strategies is the growth of capital. This is why aggressive investors put more of their assets in equities instead of safer debt securities. This means that their investment has a higher risk associated with it.

The Significance Of Time Factors
Aggressive investment strategies are useful if you have time factors in your favor. You should have the capacity to wait a few years so that you can take full advantage of the investments. You should also be able to tolerate a higher degree of risk. A solid foundation is must for building a financial empire. In order to establish a financial empire you must follow certain sound foundational rules of investment.

Keep Safe What You Have Gained
You must devise aggressive investment strategies so they maximize your return on investment and keep safe what you have earned. This will prevent you from becoming entangled in a cycle of profit and loss. You should analyze your source of employment to improve your strategies. Identify the expenses that take most of your income. If you find a technique to manage any of these expenses, you will be able to build more wealth without spending extra money.

Aggressive investment strategies require answers to the following three questions.

1.For how long can you comfortably invest the money? The question seems simple but the answer is important. For example, if you cannot hold your investment for a long time and make your investments in the stock market, you may have to withdraw your money during a down cycle and turn out losing money. On the contrary, if you can wait for a period of 20 to 30 years, the chance of gaining money in the stock market is better.

2.What is your expectation for the profits earned? In order to answer this question you must be realistic. Huge gains from a low risk investment, is not a realistic prediction. A certain gain from a high risk investment isn't realistic either.

3.What degree of risk are you comfortable with? If you want to invest in a high-risk venture be prepared to lose your money. If you decide to invest in a low risk venture don't expect huge returns.

Additional Help
Many people specialize in investing. It is often best to seek the advice of the experts when investing money. Stock brokers can be of assistance in the stock market and real estate agents can be of assistance in the real estate market. They've spent years acquiring invaluable knowledge of their field and can help you reduce your risks and maximize your returns for a fee.
About the Author
David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their web site http://www.smallbusinessconsulting.com
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