• Risk vs. Return: What return are you expecting, and what risks are you willing to take to receive that return? To take a high risk, you must have a reasonable chance of the desired return.
• Asset Allocation: Select assets from different categories. A combination of stocks, bonds or mutual funds can reduce risk. If one type of asset isn’t performing well, having investments in other assets can reduce losses.
• Diversification: Don’t invest everything in the same stock – diversify your investments to prevent losing all your invested money.
• Monitor Your Investments: Look over the trading records. Make sure trades went through at the right time, and make sure your investor didn’t overcharge commission. Keep these documents to support you should you need to protest a trade. Watch your investments so you know whether they are growing or not, and reinvest if needed.
• Professional Help: Consult a professional to help you evaluate risks and find the right investments. However, don’t let a professional talk you into investing more aggressively than you feel comfortable with.