The Risk-Wise Investor: How to Better Understand and Manage by Michael T. Carpenter

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By Michael T. Carpenter

User-friendly chance administration instruments, suggestions, and methods for a much less convinced world

Though a truly excessive point of investor uncertainty, anxiousness, and situation approximately danger now exists, nearly all of traders don't surely comprehend funding risk-let on my own find out how to successfully deal with it. The "Risk-Wise" Investor bargains a wholly new, ordinary, non-technical solution to assist you larger comprehend and deal with uncertainty and danger. This sensible advisor may help traders stay away from many universal pitfalls and make good trained, knowledge-based judgements while dealing with uncertainty and danger. It additionally exhibits how you can enforce a customized, systematic chance administration making plans method that would let you deal with the dangers you face extra successfully and increase the possibility of accomplishing particular funding ambitions. notwithstanding conventional funding recommendation is predicated on taking the lengthy view and diversifying portfolios, the data right here indicates how you can contain extra danger administration concerns into your plans. It additionally presents cutting edge insights that might aid traders and their advisors greater know how to

  • Gain a realistic, uncomplicated, wisdom established figuring out of threat and threat management
  • Better comprehend and deal with monetary uncertainty and swift change
  • Release life-risk administration abilities on the earth of investments
  • Become much less fearful, extra a professional, life like, and in all probability extra profitable investors
  • Learn a brand new "empowering" definition of threat to extra successfully tackle threat and uncertainty
  • Help lessen the chance and strength influence of detrimental surprises

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Extra resources for The Risk-Wise Investor: How to Better Understand and Manage Risk

Example text

When increased knowledge of risk is paired with deeper understanding and thorough preparation, risks are managed much more effectively and our fears and anxieties are dramatically reduced. Simply stated, and with very few exceptions, what we know, understand, and are prepared for cannot harm us. This important precept is extremely valuable to “Risk-Wise” Investors today. It serves as a guidepost in the continuous search for better ways to identify, understand, manage, and control risks. This strategy is also just as effective in addressing the newly evolving, and sometimes frightening risks emerging from our rapidly changing, faster-paced, more interconnected, and less certain world.

The Non-Natural World of Investing It is critical to emphasize the importance of taking into full account and understanding the basic fact that human beings have been hard-wired by evolution over tens of thousands of years to deal with the risks, rewards, and realities of life in the harsh, natural world we humans have lived in for over 98 percent of human existence. Our innate physiology and behavior were formed in the unforgiving natural world where the focus of life was on surviving from day to day, and on only the here and the now.

Make your decision to act or not act—then implement it (while avoiding the common decision-making traps of many investors). 5. Effective ongoing risk monitoring and decision making (continuously being on guard for the emergence of new risks or threats and the evolving nature of known risks). Building on this basic outline of the “Risk-Wise” Investor risk management process, the rest of this book will focus on how you can put each step of that process into action with extensive practical insights and valuable additional information that will help you build you own personal, customized risk management plan.

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