Cut your tech stock risk

Article Excerpt

Today’s fast-changing technology offers huge opportunities in technology stocks. However, fast change also brings danger. Here are some safety measures: • Diversify: The high-tech sector has more than its share of winners and duds. So, invest carefully and buy more than just one technology stock. Gains on your winners should offset your losses. • Focus on up-and-coming technologies: For this, you need to know how technology is changing. For instance, the continuing rise in the use of new wireless devices has resulted in increased demand for faster, more reliable wireless networks. • Buy multi-product companies: Technological advances come in spurts, and leapfrog each other. Focus on technology stocks with a variety of existing or soon-to-be-released products, and avoid one-hit wonders. wonders…