Buy low and sell high; it’s the ultimate investing tip, although never easy to execute. That’s where the second-best investing tip comes in: control the risk that comes with investing. One of the best ways to do that is to have an exit strategy when taking a position on any investment. That is, establish pragmatic predefined selling points — for both a profit and a loss — that take emotion out of the equation.
The bottom line: There’s no guarantee an investment will be bought at the optimal price — but if we’re smart, we can always control how much we ultimately lose.
Photo Credit: Katrina Tuliao