Hello, steemians today i am here to give you some information about golden rule of investment. Lets begin...
Dictionary risk is exposure to the chance of injury or loss. And investors would agree when we invest our money in stocks real estates or other assets we don't want to lose it so the first and most obvious investment risk is the possibility that we could lose all our money.The good news is that if you follow the basic rules of investing the probability of losing all of your money is virtually zero and the bad news is that you'll still get nervous when you see the value of your investments move up and down each day. This fluctuation in prices is called volatility as the price movements get extreme the volatility of your investment is said to increase when the up and Down movements get less extreme volatility is said to decrease while investment volatility can be scary, it can also lead to significant investment opportunities. Here's how that works when prices start to fall and volatility is increasing in the downward direction.
Some investors panic it feels to them like thier money is running down the drain and that if they don't sell now they'll end up losing everything this is the ideal moment to grab investments at prices lower than they're actually worth in. In short, volatility gives you the chance to buy investment on sale this is why it's so important keep your emotion in check when you make investment decisions panic can be very costly. So now you know the wise investors secret volatility eauals opportunity as long as you follow the rules for building strong portfolios.