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1 Crucial Strategy To Avoid Awful Investing Mistakes

2 only needs to generate a 5% return to break even. The real point of the exercise above is to show that having a small number of high-risk stocks in a portfolio exposes investors to powerfulpsychological forces. The human brain is much less adept at holding on to a particular stock when it causes a 25% drop in that investor's portfolio. This, in turn, can lead to loss-aversion, causing the investor to prematurely sell the stock after a large market decline.The proper allocation of high-risk investments makes it easier to deal with the dramatic ups and downs that come with higher-risk investments and can help to prevent emotional investing decisions. Foolish takeaway In my opinion, one of the bigger risks of investing in a small number of companies isn't that a single stock will fall and seriously affect overall returns, but rather that the investor will buy or sell based on an emotional response to dramatic price swings. In business, success generally doesn't happen overnight, and reacting to limited information can be dangerous to those sitting on large portfolio declines.

Key Investment Strategy: Equinox Summit Hosts "Fitness and Finance" Jan. 30

ENOX Key Investment Strategy: Equinox Summit Hosts "Fitness and Finance" Jan. 30 Greg Elliott Friday, January 24, 2014 2:41pm Content Options SUMMIT, NJ - Equinox Summit is hosting a unique event designed to enhance attendees physical -- and financial -- well-being. "Fitness and Finance", which will take place January 30, will begin with a dynamic group fitness class, followed by a presentation from T3 Live's Chief Strategic Officer Scott Redler. Beginning at 7 p.m., attendees will first challenge themselves in METCON3, a group fitness class designed to tax all three energy systems.

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