Rationale For Investing

One of the key criteria to astute investing is to consider how and when you will take your profits – in other words you need to develop an exit strategy before you invest in the share market. This is crucial to your success simply because while an asset may rise in value, it is not realised until you sell. And because there is a possibility that an asset can fall in value you need to consider how and when you will exit if your investment turns sour or does not perform as expected.

Another key criterion to astute investing is to consider your rationale for investing in a particular asset in the fist place. If you do not understand the consequences of your investment strategy, you are…