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Daily Archives: July 12, 2011

Six Ways to Reduce Investing Risk

July 12, 2011
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Six Ways to Reduce Investing Risk

In the investing business, happily, even high risks are seldom fatal. But they can certainly hurt, and the sooner you learn to identify and eliminate the greatest risk factors in your own investing, the sooner you’ll be on the path to increased profits and decreased pain. Here are my six favorite ways to reduce risk. 1. Use market timing. When the market is in a confirmed downtrend, you should be in a defensive posture, keeping a lot of cash on the sideline or even selling short. This practice alone is a major reason that Cabot growth advisories like Cabot...

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