Create an Investment Plan

1.Determine your goals for the future:
A carefully structured investment plan can be a means of achieving long-term or short term goals. Knowing what you want to accomplish will make it easier to tailor the investment plan to fit those needs.

2. Decide how much you can initially use for investments:
Depending on your goals, a broker can assist in deciding how much you would need to initially make available for investments.

3.Consider your comfort level in regard to taking risks:
With most investments, assuming a greater degree of risk does hold the potential to generate higher returns, but it also means a greater chance of losing your investment. For people who are more conservative with money, beginning your plan with a focus on bonds and stock options that carry less risk or volatility is good place to begin. You can always try a riskier investment at a later date, once your understanding of market projections and trends increases.

4.Diversify your selection of investments:
Diversification helps to insulate you from incurring staggering losses when one industry experiences a downturn, since there is a good chance losses created by a couple of investments will be offset by gains realized with the other investments.

5.Learn the marketplace:
Even if you have an excellent broker, make it a point to learn how to read market reports, project movements with different stock issues, and in general, how to predict what will happen with your investments in the future.