If you are just a beginner, this site is designed to help you better understand the concepts of investing. Beginners must not be motivated by the lure of stocks that will double or triple in one day. Investing is meant to be a sound method of steadily growing your investments over time. Large gains in a short period of time carry a lot of risk, and investors must recognize the great downside risk associated with such investments. All too often we hear of those that have made a fortune from the stock market, but not those who have lost one.
Many investors have the perception that investing successfully can only be done with stocks.
The remainder is usually made up of bonds, money market instruments and other fixed income securities. The reason for this is that stocks typically provide a higher return than other securities. Investors first need to assess their investment objectives and risk tolerance before choosing the right balance of securities. Rational investors will act to maximize their return while minimizing risk. Risk and return can be thought of as having a direct relationship.