The Oxford Club is a publishing organization that specializes in financial news, opinions, and advice for investors across the world. Based in Baltimore, Maryland, the organization currently has more than 157,000 members hailing from all over the world – in excess of 130 countries, to be exact.
One of the most sensical tips The Oxford Club has released in its long history is to always have an exit strategy for when investment plans don’t go according to script.
While anybody with enough money and the capability to read can purchase bonds, stocks, and other financial instruments on financial marketplaces, it’s difficult to know when exactly one should sell their holdings.
Before you buy any type of investment, you should always have an exit strategy. Failing to think of what you’ll do if a particular financial instrument starts performing negatively can cause you to lose money, and even act irrationally when it comes time for rubber to meet the road.
The Oxford Club actively educates investors on what to do in various situations, and informs them of the best investment opportunities at any given point in time. Thanks to Investment U, a division that’s dedicated to teaching people of all skill and interest levels about the world of finance, thousands of members of The Oxford Club are able to learn important lessons about various financial instruments.
One of the most important things to know about playing with financial instruments is that the size of your investment always matters. If you don’t have much money to play around with, then you shouldn’t bother with frequent rebalancing of your portfolio.
You should also try to be as unbiased as possible in evaluating investments. Many people think in regards to financial investment performance with cognitive bias, holding false associations between success and certain investments, eventually causing them to lose money.
Yet another thing you should always keep in mind as an informed, success-driven investor is to minimize your costs of investment, or trade as infrequently as possible. If you absolutely have to make al trade to keep from losing money, then do it, but don’t trade for fun.