November 23, 2023
How Can I Reduce My Risk?
Investing always carries risk; often, the greater the risk, the greater the reward – but also the greater potential losses. So, let’s cover some quick tips for minimising risk!
- Know your risk tolerance: Invest in stocks that create a blend of risk you’re comfortable with. You can check out every Theme’s risk level by their chili rating.
- Due diligence: Invest in sectors and companies you know, use, and understand – or do your research first!
- Invest what you can afford to lose: know your budget and don’t invest beyond your means.
- Diversify! Invest across a range of Themes, shares, sectors and asset types to mitigate your loss if one sector or company faces a crash.
- Pound cost averaging: buy frequently in small batches instead of trying to time the market.
- Hold your investments for the long term