Eat Well, Sleep Well

DEFINITION of 'Eat Well, Sleep Well'

An adage that, referring to the risk/return trade-off, says that the type of security an investor chooses depends on whether he or she wants to eat well or sleep well.

BREAKING DOWN 'Eat Well, Sleep Well'

Investing in high-risk, high-reward securities will offer you the potential to eat well, but the risky nature of these securities might prevent you from sleeping at night. By contrast, investing safely means that you will sleep well, but the low rate of return may keep you from eating well.

RELATED TERMS
  1. Sleeping Beauty

    A company that is considered prime for takeover, but has not ...
  2. Risk-Return Tradeoff

    The principle that potential return rises with an increase in ...
  3. Eating Stock

    The forced purchase of a security when there are insufficient ...
  4. Away From Home

    The IRS criteria used to establish whether or not you are within ...
  5. Law Of Diminishing Marginal Utility

    The Law Of Diminishing Marginal Utility is a law of economics ...
  6. Eating Someone's Lunch

    The act of an aggressive competition that results in one company ...
Related Articles
  1. Retirement

    The Money Market

    If your investments in the stock market are keeping you from sleeping at night, it's time to learn about the safer alternatives in the money market.
  2. Insights

    Fitbit Wants to Improve Your Sleep Habits (FIT)

    Fitbit has released an update to their Fitbit app that will help users establish better sleep routines.
  3. Managing Wealth

    Risk and Diversification: The Risk-Reward Tradeoff

    The risk-return tradeoff could easily be called the iron stomach test. Deciding what amount of risk you can take on is one of the most important investment decision you will make. The risk-return ...
  4. Managing Wealth

    Financial Concepts: The Risk/Return Tradeoff

    The risk/return tradeoff could easily be called the "ability-to-sleep-at-night test." While some people can handle the equivalent of financial skydiving without batting an eye, others are terrified ...
  5. Managing Wealth

    Risk and Diversification: What Is Risk?

    Whether it is investing, driving, or just walking down the street, everyone exposes themselves to risk. Your personality and lifestyle play a big role in how much risk you are comfortably able ...
  6. Personal Finance

    A Day Without Spending, A Lifetime's Worth Of Lessons

    Financial guru Suze Orman once challenged her fans to go a day without spending any money. Here are the lessons learned from this exercise.
  7. Managing Wealth

    Understanding Risk-Return Tradeoff

    The essence of risk-return tradeoff is embodied in the common phrase “no risk, no reward.”
  8. Professionals

    7 Surprising Ways to Be More Productive At Work

    Increasing output by any means possible is a never-ending quest for some individuals. If that’s you, consider these seven unexpected suggestions.
  9. ETFs & Mutual Funds

    Scoring Risk-Return Data

    By Richard Loth (Contact | Biography)This is the entry we need to complete in the Fund Investment Quality Scorecard for an analysis of a fund's risk-return profile: Obviously, ...
  10. Personal Finance

    4 Ways To Cut Your Living Expenses

    Living expenses can add up if you're not careful, here's how to save on everyday living expenses.
RELATED FAQS
  1. What would be the best long term investment?

    What would be the best long term investment if we have some extra cash? Should we payoff our home loan or invest in stocks? ... Read Answer >>
  2. Should I keep our money in savings or pay off our car?

    We have about $47,000 in savings. We have a monthly income of about $3,000. Our ages are 75 and 77. Wi... Read Answer >>
  3. How can I use risk return tradeoff to determine my risk tolerance and investment ...

    Learn how an investor can use the risk-return tradeoff to determine what assets to include in a portfolio, and understand ... Read Answer >>
  4. What are some classes I can take to prepare for the Series 6 exam?

    Learn about how the risk-return tradeoff applies to bond yields, and the different types of risks associated with investing ... Read Answer >>
  5. How should I allocate my ETF portfolio?

    I invest strictly in ETFs and my portfolio contain... Read Answer >>
  6. What is the breakdown of subjects covered on the Series 6 exam?

    Learn about the risk-return tradeoff for investing in stocks versus low-risk Treasurys and bonds, and understand the types ... Read Answer >>
Hot Definitions
  1. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  2. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  3. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  4. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  5. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  6. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
Trading Center