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If real estate is the 'Trump Card’ in your investment portfolio, I will say that investments in stock will come, a close second. Any investment portfolio is incomplete without this essential asset. Many skeptics feel that stock trading is a risky business, my response to them is “So is life”. We don’t stop living just because we all know that the end is somewhere and we don’t know about it. Any unknowns will always carry the element of risk. It’s how we deal with the risk and do some analytics on the probabilities of an investment going bad. That is where the term ‘Calculated Risk’ plays a major role. Be it a management initiatives, family decisions or be it the stock market, decisions have to be based on facts and figures. If you put some amount of due diligence in your investment style then you can always make a safe bet on which side of the Return on Investment [ROI] you will fall into.
I know many middle class men feel that fixed deposit is the safest bet for our ‘Rat Race’ salary that we draw. I do agree it is a safe bet compared to other investment strategies. If you would have read my 'Trump Card’ article then I am sure you realize the ‘Risk versus Returns’ benefits. My understanding of fixed deposit is to keep your savings locked up for a certain period. If god forbid, any situation arises and there is an emergency cash required then we break the fixed deposit and use up the fund. Yes, we do stand to lose the interest rate for the fixed deposit term, however, even in this scenario, different banks have different schemes. Find the best that suits you and deposit in such schemes.
If you have secured the funds for any such emergencies that your envisage for the coming 6-8 months, I think you are ready to getting into the Stock Trading World with some of the funds available for this investment.
To get out of the ‘Rat Race’ that we are in, on a daily basis, it is important to multiply our money. With a little caution and continuous monitoring, stock market is one way of achieving this objective. As with any investment, returns are high when the risk is high. Stock market due to globalization can change directions quickly based on any global cues, for the positive or negative trends. This is why continuous monitoring of this asset is a must as compared to real estate.
Nevertheless, unless we get into understanding this investment strategy, we as common man will continue to accept the monthly pay check and pay our bills and carry on with the monotonous lifestyle governed by our need to survive financially. Please think about this as an option to multiply your money.
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