Investing Tip: Always have some cash in your hand everytime

Many people who invest do not have any money left in there hand. They invest all there money thinking that they will get more returns if they invest more. I am just telling you might get better return, but if you fall, you will fall bad and will have no way to bounce back.

I've already told you to have a plan. But in that plan also include this, to have some cash reserved. Just keep upto 5% of the cash reserved. It is not very much in this case.

Having cash reserved is a very good way to reduce the risk. You will be reducing risk to great amount.

You must be thinking that you will not get any return on this cash. True. But it is worth it, not to gain anything because you can use it in the time of adversities.

Lets suppose that you have invested all your money in the market, you do not have any money in hand. The market is going smoothly and you are happy. But suddenly it falls. You suffer a loss and you have to wait to regain that amount and you will not make any profit.

On the other hand, if you have had some money, you would have invested it in the market, when it was down (which would be a great bet), and when the market would have gained you would have earned with it.

Always remember that, the market will always grow when it falls.

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