Leverage, options and other types of speculation require one special talent, KISS: Keep It Simple Stupid. Sometimes the best advice is the hardest to follow especially for new investors hell-bent on making a killing on their first go. Use these tips to manage risk in your own portfolio:
- Set aside funds for other trades. Don't put all of your eggs in one basket.
- Sit some out. Don't chase every deal. Focus on what you know and understand.
- Diversify. Buy several stocks in several industries to spread your risk.