Sometimes greed, temptation, and lack of knowledge can influence how you invest. It may encourage you to stick to certain investments and avoid others. It is so tempting to stick with what we feel is safe or to stick with what we know.
You might be lucky and invest in something that is HUGELY successful right now. That’s great when the going is good, but the important thing is that you should not get complacent. Your brilliant investment may very suddenly do horribly badly – and wipe you out!
Sticking with what you know is a very good way to get started, but once you have your footing, you must consider diversification. Spread your risks.
Most alternative investors want to play relatively safe and tend to mix up their investments – from low-reward, low-risk through to high-reward, high-risk.
Remember, if you expose yourself to only one market, not only have you increased your risks, you have also potentially limited your opportunity.
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