- Risk vs. Return
- Asset Allocation
- Monitoring Progress
The first step in the investment process is to figure out what sort of Return on Investment (ROI) that you are seeking and to determine what level of risk that you are willing to take.
The risk that you are willing to take and the size of the ROI that you receive are correlated. In order to take a higher risk, you must have a reasonable chance of a higher return. The size of the risk will be affected by many factors in the market, and it is recommended that you consult trusted professionals.
These professionals will have ideas and recommendations for your investment portfolios, but never invest more aggressively than you feel comfortable with.