--------------------

SUMMARY:

--------------------

How to Achieve High Returns Taking Little Risks, a question a get asked all the time and I’ll attempt to answer it here today.

Like you, I’ve been on the hunt for the ‘Holy Grail’ of investing and trading for years but have yet to find it.

But, I have found what does work and I want to share this with you today.

So here are the following 3 things you can do immediately do to reduce your trading and investment risk while also achieving satisfactory returns.

1. Position size. What do I mean by this term?

It simply answers the question, how much? That is, how much do I invest or trade when I have an opportunity in front of me.

So begin reducing your size of trades or investments going forward and this will cut down your risk right away.

2. Diversification

Some say you should diversify while others say you should focus on the few eggs and watch over them carefully. I say it depends. It depends on how much experience you have had with the markets and also the capital you have.

3. Stop Losses

You have no excuse, they are easy to set up and it protects you to allow you to play another day by protecting your capital when things go wrong.

So review your position sizes, review your portfolio diversification and review or implement your stop loss rules and you will be on your way to much safer and consistent return. And you also will sleep much better at night.

I hope this shows you how easy it is for you to reduce your risk by simply implementing the 3 things that we spoke about to achieve extraordinary but safe returns.

Be the tortoise, slow and steady and let compounding perform its miracle.

Get Terry’s 10 step stock checklist and video lessons for free: http://www.thefreedomtrader.com