Four Simple Stock Market Money Principles for Managing Money

Are you presently invested in the stock market? The stock market can rise for a long period of time. Even if the stock market is falling there are opportunities to make money. However, it’s important to protect your portfolio, especially in an unhealthy market environment which may occur a few times a year.  When the market climate is favorable, your investments are most profitable and decision making is easy.

What is Risk?  Very simply: “Risk is the potential loss you can have on an investment”. 

Do you understand what types of investments you have in your portfolio and how quickly they could go up or down?  By diversifying your assets in a mix of equities and bonds you have more control over the movement of your portfolio.  They don’t necessarily rise or fall at the same time. Since there are times when there are wide swings in price, it’s best you have a plan of what to do ahead of time, instead of following your emotions to make your decisions.

Some investments are more volatile than others.  Volatility measures movement.  Volatility is the rate at which prices move higher or lower. The higher the volatility, the more risk. This means you could have greater profit or loss. The lower the volatility, the less risk and many times you will make less.  It’s much easier to gain back a small loss than a larger one that can take you years to make back and will delay you achieving your investment goals. Mistakes and losses will happen. Mistakes with smaller amounts of capital are less costly than with larger amounts of money. Nobody is perfect. It’s impossible to be right all the time investing.

The only way to avoid mistakes in the stock market is not to invest.

Use these 4 principles (RISK) to grow your wealth

R – Review and Write Down Your Financial Plan

• Review your financial plan and write it down. Written goals that are part of your plan have a better chance to happen.
• Adjust your plan accordingly to the lifestyle you want.

I – Invest Wisely, Consistently, and Take Action with Your Goals in Mind

• Create a daily routine that you love, towards your dreams and goals.
• Invest wisely by diversifying your assets in different types of securities. Start now to invest. The sooner the better, but remember, it’s not too late to start.

S– Safety/Capital Preservation

The key to financial success is controlling your losses. Safety/ Capital Preservation are the solution to growing and sustaining your wealth. This principle has made me a successful money manager for over 35 years. Safe and consistent investment strategies that you protect your capital will help you be successful in building your wealth.

K – The 3K’s: Knowledge is Power, Know the Trend of the Market, and Kindness is King

• Knowledge is power. Track what your investment portfolio.
• Know the trend of the market whether it’s favorable or unfavorable.
• Kindness is King. Remember every investment or trade will not be a winner.

Pay attention to the types of investments you own and how volatile they are. Have a plan to manage the volatility so you can protect your assets.  Don’t be influenced by what others are doing.  No matter if you are 25, 40, or 70 years old, sleeping peacefully is recommended.  If you are not sleeping at night, your investment portfolio is not correct for you. It’s time to make a change. Create an investment plan that fits your investment philosophy.

Have a clearly defined investment objective. Begin writing down you’re short and long-term investing goals. Whether you have someone managing your investments, or if you do it yourself, have a portfolio that suits your needs, objectives, and time frame that depends on your financial goals.  Decide if you will manage your finances or reach out to find someone to manage your money.

The key to investment success is to follow a plan that focuses on Safety/ Capital Preservation. This is the solution to growing and sustaining your wealth. Take one action step today using the 4 principles.  Start now to enjoy the financial security living a happy lifestyle that is filled with the inner peace and freedom that you want.

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Bonnie S. Gortler

Bonnie Gortler, a Consultant, Coach, and Author, is a Wealth & Well-Being expert with over 35 years of experience in managing multi-million-dollar client portfolios at a top-rated investment firm. As the author of Journey to Wealth, Bonnie is dedicated to teaching the importance of risk management and achieving true financial well-being by integrating both the technical and mental aspects of investing. With an M.B.A. and certification as a life coach, Bonnie combines her passion for coaching, consulting, and blogging to inspire people globally. Her powerful techniques and winning mindset help others experience personal growth and financial success. Explore wealth-building tips, personal development strategies, and more at BonnieGortler.com, and discover how you can enhance your wealth and well-being.  


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