Manage Personal Investments

With regard to some important steps to take decisions in the management of personal investments:

1. Intellectual framework
It was one of the principle of providing a portfolio with the characteristics of the purchased shares are watching, if you have found the answer, perhaps some of the mistakes in investment management. Since the method may be due to the structural view, you can use the emotional reaction is not rational response to market changes in market prices.

2. Measure of liquidity
If cahsflownya, of course, his company is also able to produce both. If you do not understand how to evaluate cash flow, it may be bad for the selection of investments in the portfolio.

3. Assessing the accounting
Many investors do not understand that they have income to net income and earnings per share that existed in corporate annual financial statements. This is due to a lack of knowledge about the analysis of a company report.

4. Company Fundamentals
An example is Coca-Cola, not to get the highest gain from the sale of a minimum of supermarket. But it sells the syrup bottles sold in the money market, so there is a fundamental business therein.

5. Correlation risk
An example given is a case where a more diversified portfolio that has a total of ten shares of three banks, two insurance companies and five investment in real estate, a major industry, an oil company, a bank and a international fund. .
In this case, we discover that the answer is diversification of the five titles that are correlated with the field itself.
If you are unable to meet the five stages, so do not hesitate to invest.