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Date Posted: 18:00:22 08/26/02 Mon
Author: mr_ira
Subject: How to manage investment Portfolio Risk (Volitility)

I came across a section of a web site that covered investments. What I found interesting was the focus. Not on how to get rich quick, but how to manage your risk through methodic investing. If more people are aware of the pitfalls of investing and how to construct a strategically diversified portfolio, they would probably retire a lot more comfortable financially. The web site is www.open-ira.com. Look in the education section under How to Invest. Here are the topics covered. In this forum I would like to discuss each section covered and see how investors could have benefited from the information.

Common Investment Mistakes or Poor Investment Decisions?

Concentrated Positions
Hot Tips
IPOs: Initial Public Offerings
Emotions
Analyst Credibility
Garbage In Means Garbage Out
Buying an Unmanaged Index Fund

Diversification vs. Asset Allocation-How to Manage Your Risk

Types of Risk
Blind Diversification vs. Strategic Diversification
Asset Allocation

Why Can Investing Through a Bank or Other Savings Institution be a Poor Investment Decision?

Cash Flow Analysis

Dollar Cost Averaging

Hope for the Best but Plan for the Worst

Wills and Trusts
Proper Insurance
Tax Considerations

Summary

Suggestions
Final thought

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