The key to investing in UK markets is understanding how companies and the overall market is affected by specific events. Like investing in the United States market, your goal as an investor in the UK market is minimizing risk and maximizing upside. Buying low and selling high is one way to do this, but identifying stocks with a lot of growth potential is important as well. Investing in up-and-coming UK companies allows you to maximize your upside, while siding with established businesses that have a proven track record can minimize your downside. As is usually the case, a diversified portfolio full of high upside stocks is generally best.
