Starting To Trade? Schaeffer’s Investment Research Advises You To Keep These Factors In Mind

Schaeffer's Investment Research

March 25, 2021

Investment Research Advises You To Keep These Factors In Mind

Starting To Trade? Schaeffer’s Investment Research Advises You To Keep These Factors In Mind

Investing in stocks, options, bonds, and other financial instruments can be intimidating. Make the right investments and you could see your wealth grow. Make the wrong choices, and you could lose a lot of money. Schaeffer’s Investment Research, a leading investment and options research firm, argues that investors should do their homework before they start investing.

“Investing is a powerful tool for growing wealth,” notes Bernie Schaeffer, the founder of Schaeffer’s Investment Research and a leading options expert. “It’s not just about the famous investors making billions, but families planning for retirement or college. Before you start investing, however, you should engage in some self-education.”

The experts at Schaeffer’s Investment Research believe that when it comes to investing, knowledge truly is power. By expanding their knowledge and learning about how investment markets work and how different investment vehicles function, including stocks, bonds, and options, investors can mitigate risks and protect themselves.

Beyond understanding the details regarding specific markets and investment vehicles, Schaeffer’s Investment Research’s investing pros also note that new investors need to keep an eye on macro trends. Strong government stimulus packages could bolster markets, while economic downturns can cause even good investments to turn sour as markets suffer widespread losses.

Risk is especially important when it comes to investing. There’s a general maxim that increased potential for profit correlates with increased risks. An investor can invest in penny stocks, for example, and some see returns in excess of 100 percent within a few weeks or even days, hours, or minutes. Schaeffer’s Investment Research reminds investors, however, that risks will also be high and investors could lose all or most of their money when investing in penny stocks.

On the other hand, the experts at Schaeffer’s Investment Research note, an investor can invest in an established Silicon Valley tech giant and they likely will not lose all of their money over the course of days or years. Yet investors investing in tech blue chips also likely won’t enjoy 100 percent gains over a few months.

The professional investors at Schaeffer’s Investment Research often advocate for investors to diversify their portfolios. Investing some capital in higher-risk investments can be wise. However, it’s smart to balance that high risk with lower-risk investments, such as in blue-chip stocks or government bonds.

Schaeffer’s Investment Research Talks About Options Trading

Schaeffer’s Investment Research focuses especially on options investing. Options have a reputation for being high-risk. However, many investors use options to decrease risks. If an investor holds a big stake in a certain stock, for example, options based on that stock can be used to protect investors from declining stock prices. You can buy the “option” to sell the stocks at a higher price.

Before investing in options, however, investors need to educate themselves. Schaeffer’s Investment Research has helped countless investors develop effective options trading strategies that can mitigate risks or produce profits.