Friday, April 1, 2011

Sleep Like A Baby.

When investing your money, keep these words of wisdom in mind: ''If you lose Sleep over your investments or are more concerned with the performance of your Wealth then you is not with wiTdom.” wiTdom promises you not to give you sleepless night. You can relax and sleep like a baby when your wealth is managed by wiTdom. The risk/return tradeoff could easily be called the "ability-to-sleep-at-night test." While some people can handle the equivalent of financial skydiving without batting an eye, others are terrified to climb the financial ladder without a secure harness. Deciding what amount of risk you can take while remaining comfortable with your investments is very important. Get your investment professionally cleaned. Many people do not realize that such a service exists. It is a little known fact that the mites and bugs living in your investment contribute to allergies, congestion, and other breathing disorders that may be keeping you from getting a good night's sleep.Watch what you invest in. Not only is a unhealthy investment conducive to good sleeping patterns.Make a "Investment To Do" list for the next day before laying down. This allows you to get them out of your head and onto paper. If they are out of your head you will be free of the anxiety they bring with them. When you lay down for the night there should not be anything on your mind except how comfortable the bed is.

In the investing world, the dictionary definition of risk is the chance that an investment's actual return will be different than expected. Technically, this is measured in statistics by standard deviation. Risk means you have the possibility of losing some, or even all, of our original investment. Low levels of uncertainty (low risk) are associated with low potential returns. High levels of uncertainty (high risk) are associated with high potential returns. The risk/return tradeoff is the balance between the desire for the lowest possible risk and the highest possible return. This is demonstrated graphically in the chart Above. A higher standard deviation means a higher risk and higher possible return.

A common misconception is that higher risk equals greater return. The risk/return tradeoff tells us that the higher risk gives us the possibility of higher returns. There are no guarantees. Just as risk means higher potential returns, it also means higher potential losses. Happy to Help you

Atul Sikrai

Sr Vice President & Head of Equities

wiTdo investment advisory.

No comments:

Post a Comment