Thursday, October 22, 2009

Questions every investor or a person planning to invest should know the answers to

Easier said then done...
  1. What is your risk tolerance? Does it match your age? Your wealth?
  2. Will you panic if your holdings lose X% - do you expect it to at some point?
  3. Did you write down portfolio success goals? If you write them down – are they realistic?
  4. How soon will you need the money invested?
  5. What will you do when S&P 500 crosses its 200 days moving average downwards? Upwards?
  6. What will you do if your portfolio gains 50%?
  7. What will you do if your portfolio loses 8%, 10%, 20%, 40%? Specific actions?
  8. Do you have a plan to sell anything next month? Buy anything next month?
  9. Are you bullish on the entire market?
  10. What is the current greatest risk to the economy?
  11. What’s the level of aggressiveness of your portfolio?
  12. Are you keeping a journal of your thoughts and actions regarding your investments? Are you reviewing it to improve your future actions?

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