Because investment is not safe in most cases, it's a lot like a game until the game is played and a winner is declared, you don't know the results. Whenever you play almost any game, you have a strategy. There's no difference in investing, you need an investment strategies.
Basically, an investment strategies are a plan to invest your money in various types of investment that will help you achieve your financial goals in a given time. Each type of investment includes individual investment to choose from. There's a clothes shop that sells clothes, but they're shirts, pants, dresses, skirts, underwear, etc. The stock market is a type of investment, but it contains different kinds of stocks in which you can invest.
It can quickly become confusing if you haven't done your research, simply because there are so many types of investment and individual investments available to choose from. This is where your strategy comes into play in conjunction with your risk tolerance and style of investment.
Work closely with a financial planner if you are new to investing before making any investments. They help you develop an investment strategy that is not only within your risk tolerance boundaries, but also helps you achieve your financial goals.
Never invest money without a goal and strategy to achieve that goal! It is important. Without knowing what the money is used for, and when you get it back, no one gives it to anyone! If you don't have a goal, plan or strategy, that's what you are doing! Start with a goal and strategy to achieve that goal!
