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Welcome to Investing For Dummies!

Understanding The Emotional Dynamics Of Investing - Investing can be an
emotional roller coaster for many people. This holds true whether you are
investing in real estate, gold, the stock market, your own business, or
whatever you consider your investments to be. There are some basic things you
can do to make the process less emotional and in turn, less stressful. Make
sure you do not over-extend yourself, be aware of when your break even points
may be, and have a back-up plan if your first plan doesn’t work the way you
thought it would.

Do Not Over-Extend Yourself - There is one main reason that over extending
yourself financially for an investment is never a good idea. It does not allow
for any error, change, or learning curve. Most often people rely on others to
participate in some way to make their investments successful. Most businesses
need people to run it, investment properties need tenants, and market
investors need professionals to guide them. If somebody lets you down it will
be hard to bounce back if you are over extended.

The Break Even Point - Different investments have different break even points.
If you are looking to break even quickly and start being fully profitable you
are likely looking at investments that are not as risky. Higher risk equals
higher reward. Lower risk equals less reward. A combination of both
investments is excellent to have. After you have reached a breakeven point you
open up your investments to valuable other opportunities too.

Have A Plan For The Plan - At first thought that probably sounds ridiculous
but it is necessary. One of the most stressful

things that can happen to investors is to not have things go the way they
envisioned. Creating a plan in the first place will allow you to realistically
evaluate your expectations and investments. No solid plan should be all or
nothing. That is when the back-up plan comes in to play for investors. It
allows you the flexibility to make adjustments and tweaks when necessary.

The dynamics of investing can be very emotional and stressful if not properly
managed. When you are aware of what is all involved you give yourself the
power to avoid those situations or at least manage them effectively. That will
make your investments more exciting, rewarding, and enjoyable. Those positive
factors will only lead to greater success in all that achieve with investments
and life.

Last update

Feb. 15, 2013, 4:37 a.m.

Investing For Dummies

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