Have More than One Source of Income Having Emergency Funds

Have Realistic Expectations

Before you invest in something, you should have realistic expectations. That is, you have an idea of the most that you're likely to gain or lose under various circumstances. Any investor would be happy to make gains in excess of 30 percent annually. The reality however is that that level of gain is unrealistic for many investors over long periods of time. Therefore, do not forget to calculate risk along with your expectations because risk, gains and losses are all related.

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