3 Questions Before Making Any Investment
How much are you willing to lose?
Money - investment, the financial world is at greater risk investments, some with less risk and a safe. Depending on what you can lose choose either alternative. The problem comes when you only think of the benefits that will provide the investment without taking into account the risk and potential losses.
What’s the worst that can happen?
This second question is closely related to the first and sight, but has another different view, as to take account of losses, we must take into account the decrease in initial benefits. That is, in period t +1 can be to lose all the benefits obtained in t, which we have reinvested and elsewhere have a serious problem.
How I can overcome the worst happen?
Whether you think of a situation described in question one or like question two, if we invested we must be assured that we will be able to recoup the losses. Either by way of a guarantee, our possessions or any other form of liquidity.