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Minimizing Losses In Investing

As a Financial Planner or Advisor independent, I never tired of reminding the risky investment products. Let us recall the term High Risk High Return? Roughly means, higher the return on investment we get, the higher the risk. The question is, then, if we want to get the result of high investment, we must also bear a high risk? One thing we must always remember is that none of the investment business who does not have 100% risk.

Due to this risk, therefore we have to do an analysis before investing in order to minimize the risk of the investment itself (not eliminate).

One theory to minimize the risk that we often hear and often used is called diversification. Surely you've never heard the term donk like "Do not Put Eggs in One Basket" Which means that if we have a lot of eggs was not put all your eggs in one basket. So if the basket falls then the eggs will not break any. Neither the investment duni. To minimize the risk, then do not put our investment in just one product.

Investments can be done using an investment product that has been offered by financial institutions or financial products and those that use non-financial products. Using a combination of these products also can reduce the risk.

Some non-financial products that can be used in investing is like, the property (house, apartment, shop, kiosk, etc.), motor vehicles, gold / precious metals (gold and jewelry pieces / bars), diamond and precious jewelery. In addition to some specific groups using paintings, antiques, and many other products that can be used as investment vehicles.

As for financial products, there are many kinds, among other banking products such as savings deposits, time deposits and SBI, capital market products such as shares, debt securities (bonds), mutual funds, foreign exchange (currency), indexes, futures and more investment products both offered for sale locally and abroad.
The combination of financial products and non-financial services can help minimize the risk that would arise in the future. Example, the stock fell and the stock was destroyed in July diperiode s / d September in which it had precious metals prices rise high enough. Although in the end have also picked up the precious metal fell, but shares fell under the total, the investment we have not come down at the time of planting too deep. That's one example of the benefits of diversification.

Although teachers investors such as Warren Buffett once said that diversification is necessary for people who do not understand what they are doing (in the meaning of investment), in a certain scale, diversification is not only done by using an investment product, but can also use the product or investment in some countries . But we also have to be careful, because the decrease in stock in a country sooner or later will have an impact in other countries. That is why the combination of financial products and non-finance is highly recommended. So that when the market is down, we do not need to panic as people suddenly become poor.
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