Investing is complicated, and in order to be a success, you must be able to sift through technical details, and balance risks against potential gains. With a bit of practice, though, you’ll find that a well-maintained investment portfolio will significantly decrease the relative stress involved.

First and foremost is diversity. Any professional will tell you that it is unwise to put all of your eggs into one basket, so to speak. Since investment of any sort involves a great deal of risk, a wise investor will research the market, and then invest over a variety of platforms, to balance the associated risk. As a general rule, no more than 30% of your investment capital should rest in any one category.

If you feel relatively comfortable in this environment, and you’ve got some extra time on your hands, you may be interested in direct commodity investing. Commodities are among the most unpredictable (and consequently risky) business ventures. But therein lays the opportunity for incredible gains. You will need to watch this market with extreme care.

Real Estate Investment Trusts (REITs) can help round out your investment portfolio. An REIT is typically a high-yield investment, and REITs come with a variety of options. Equity REITs generate income through rent collected from properties. Mortgage REITs involve money lending, wherein the return on your investment would likely come from property owners and developers. As its name suggests, a hybrid REIT is a combination the two. There is paperwork involved, and it would be wise to research these options carefully. Be prepared.

Options are another form of real estate investment, wherein a potential buyer eliminates alternative bidders by having a property taken off the market for a designated period of time. For this luxury, the buyer agrees to pay a specific amount upfront to the seller. Purchase of the property, then, is contingent upon any number of factors (i.e. inspections, financing, etc.). Options tend to vary, so pay close attention to its terms before signing. As a buyer, if you fail to meet your end of the bargain in the designated timeframe, you will likely forfeit your initial payment (the amount paid to take the property off the market).

Still, one of the most profitable (and least risky) real estate investments remains the traditional buying and selling of a property. This is where you will be most connected to the business, and therefore more capable of formulating accurate decisions. Your presence will help to avoid obvious pitfalls.

Regardless of your investment choices, it is wise to remain in the loop. Research each option carefully, and don’t be afraid to ask questions. Know the business, so that you can get the most of your investments.

Paulie Sabol, often called the ‘legal bank robber’ for his real estate financing and bank owned foreclosure investing, is a nationally recognized trainer of real estate investors and financial thinker.