My Investment Strategy
At the Cashflow Quadrant, there is “I” quandrant which means an investor. You may become an investor, and invest your money on one or some investment vehicles. It can be property, precious metal such as gold, stock, forex, hyip, time-deposit, energy (oil), etc.
Every investment should have a risk at certain level. It can be very high (not recommended for people whose has heart problem), or very low, but there is always. There is no investment without risk. Profit guarantee & no risk blah blah that usually stated at hyip website is a truly bullshit. If there is no risk involved at any kind of investment, maybe anybody from baby-age until hundreds years old person will become an investor… and who will drive taxi then? Who will clean restaurant table? Everyone will do anything they want with money coming to them everytime.
Every person has different level of risk tolerance. There is people who shocked when he get -500$ floating on a 500000$ forex account. There is also people who can laughing when his equity nearly dead. People who loves to play HYIP, must have a hi-risk tolerance 
Well, as an investor, you must decide where and when to invest your money. But I prefer to use diversification strategy. Like oldman said, putting all eggs into one basket is a stupid decision in my eyes. Well, except you don’t have enough money to spread. But if you can’t diversify your money, i would recommend you to cancel your plan to become investor.
Diversify money into several investment vehicles is not a random move. You may calculate it, especially the risk level. If an investment has a big risk, they should offer a better return. If an investment has a big risk and offer low return, just forget it. It is not worth and only spend your time.
I usually spend bigger amount at lower risk area… such as bank’s time-deposit. Indonesia’s interest rate is around 8%-10% anually. It is guaranteed by Bank Indonesia… (for amount under 100 million rupiahs at 2007 (around $10g)). I can say it is a low risk investment if it compared with HYIP for example. So I’ll put bigger amount at time-deposit, and smaller amount at HYIP. If I found something that have a bigger return than HYIP and also have higher risk, I will put smaller amount on it compared than what I put at HYIP.
Most of newbie investor always greedy… especially when they see HYIP for the first time. They see HYIP which offer 2 digit percent daily or hourly, and usually, put most of his money there. And finally… he lost everything. Well… it is normal for newbie… at least, i did quite-same action when i still a newbie.
Everyone has own investment strategy and you may stick with your own rule. Just something that you must remember, don’t put all your money in one area, and don’t invest with amount that you can’t afford to lose 
Add comment October 25th, 2006