Best Ways To Maximize Your Returns On Investments

3. Diversify your investments

Diversify your investment types as well as your portfolio. Most investors know that it's a good idea to diversify any stock holding they have, but fewer realize that it's an even better idea to diversify one's holdings amongst many different types of investments.

 Invest your money wisely in stocks, bonds, mutual funds, real estate holdings, business ventures and other investment tools to really make sure that your money is constantly in a position to provide you with the best possible return--regardless of market conditions.

4. Do safe investments

Invest as much money as you safely can to optimize your return. Obviously, the more money you invest, the more money you stand to gain as a result. Part of investing for the best possible return is the act of saving as much money as you can in your day-to-day life in order to have more money to invest with.

5. Find the balance between risk aversion and risk seeking

The best investors--those who consistently gain the best possible return from their investments—are those who learn to carefully balance their investing strategy between the extremely risky and the extremely conservative. Growth and income mutual funds are fine tools, but they won't make you anywhere near optimal returns on your money because they're too conservative.

It's also a bad idea to invest all your money in micro-cap stocks. Despite the fact that they have a potential for quick and explosive growth, they're so risky that you stand a fair chance of losing everything.